Correlation Between Boozt AB and Rugvista Group
Can any of the company-specific risk be diversified away by investing in both Boozt AB and Rugvista Group 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 Rugvista Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boozt AB and Rugvista Group AB, you can compare the effects of market volatilities on Boozt AB and Rugvista Group 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 Rugvista Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boozt AB and Rugvista Group.
Diversification Opportunities for Boozt AB and Rugvista Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boozt and Rugvista is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Boozt AB and Rugvista Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rugvista Group AB 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 Rugvista Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rugvista Group AB has no effect on the direction of Boozt AB i.e., Boozt AB and Rugvista Group go up and down completely randomly.
Pair Corralation between Boozt AB and Rugvista Group
Assuming the 90 days trading horizon Boozt AB is expected to under-perform the Rugvista Group. But the stock apears to be less risky and, when comparing its historical volatility, Boozt AB is 1.92 times less risky than Rugvista Group. The stock trades about -0.1 of its potential returns per unit of risk. The Rugvista Group AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,530 in Rugvista Group AB on November 27, 2024 and sell it today you would earn a total of 340.00 from holding Rugvista Group AB or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boozt AB vs. Rugvista Group AB
Performance |
| Timeline |
| Boozt AB |
| Rugvista Group AB |
Boozt AB and Rugvista Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boozt AB and Rugvista Group
The main advantage of trading using opposite Boozt AB and Rugvista Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boozt AB position performs unexpectedly, Rugvista Group 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 Rugvista Group will offset losses from the drop in Rugvista Group's long position.The idea behind Boozt AB and Rugvista Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Rugvista Group vs. Cint Group AB | Rugvista Group vs. Desenio Group AB | Rugvista Group vs. Fractal Gaming Group | Rugvista Group vs. Pierce Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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