Correlation Between Boozt AB and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both Boozt AB and G5 Entertainment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Boozt AB and G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boozt AB and G5 Entertainment publ, you can compare the effects of market volatilities on Boozt AB and G5 Entertainment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Boozt AB with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boozt AB and G5 Entertainment.
Diversification Opportunities for Boozt AB and G5 Entertainment
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boozt and G5EN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Boozt AB and G5 Entertainment publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment publ and Boozt AB is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Boozt AB are associated (or correlated) with G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment publ has no effect on the direction of Boozt AB i.e., Boozt AB and G5 Entertainment go up and down completely randomly.
Pair Corralation between Boozt AB and G5 Entertainment
Assuming the 90 days trading horizon Boozt AB is expected to generate 1.25 times more return on investment than G5 Entertainment. However, Boozt AB is 1.25 times more volatile than G5 Entertainment publ. It trades about 0.04 of its potential returns per unit of risk. G5 Entertainment publ is currently generating about -0.05 per unit of risk. If you would invest 8,500 in Boozt AB on August 29, 2024 and sell it today you would earn a total of 1,950 from holding Boozt AB or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boozt AB vs. G5 Entertainment publ
Performance |
| Timeline |
| Boozt AB |
| G5 Entertainment publ |
Boozt AB and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boozt AB and G5 Entertainment
The main advantage of trading using opposite Boozt AB and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boozt AB position performs unexpectedly, G5 Entertainment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| Boozt AB vs. Thule Group AB | Boozt AB vs. Sinch AB | Boozt AB vs. Hexatronic Group AB | Boozt AB vs. NIBE Industrier AB |
| G5 Entertainment vs. Precise Biometrics AB | G5 Entertainment vs. BE Group AB | G5 Entertainment vs. Softronic AB | G5 Entertainment vs. Bjorn Borg AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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