Correlation Between Bjorn Borg and Precise Biometrics
Can any of the company-specific risk be diversified away by investing in both Bjorn Borg and Precise Biometrics 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 Bjorn Borg and Precise Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bjorn Borg AB and Precise Biometrics AB, you can compare the effects of market volatilities on Bjorn Borg and Precise Biometrics 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 Bjorn Borg with a short position of Precise Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bjorn Borg and Precise Biometrics.
Diversification Opportunities for Bjorn Borg and Precise Biometrics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bjorn and Precise is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bjorn Borg AB and Precise Biometrics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precise Biometrics and Bjorn Borg 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 Bjorn Borg AB are associated (or correlated) with Precise Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precise Biometrics has no effect on the direction of Bjorn Borg i.e., Bjorn Borg and Precise Biometrics go up and down completely randomly.
Pair Corralation between Bjorn Borg and Precise Biometrics
Assuming the 90 days trading horizon Bjorn Borg AB is expected to under-perform the Precise Biometrics. But the stock apears to be less risky and, when comparing its historical volatility, Bjorn Borg AB is 4.33 times less risky than Precise Biometrics. The stock trades about -0.22 of its potential returns per unit of risk. The Precise Biometrics AB is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Precise Biometrics AB on August 31, 2024 and sell it today you would earn a total of 237.00 from holding Precise Biometrics AB or generate 67.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bjorn Borg AB vs. Precise Biometrics AB
Performance |
| Timeline |
| Bjorn Borg AB |
| Precise Biometrics |
Bjorn Borg and Precise Biometrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bjorn Borg and Precise Biometrics
The main advantage of trading using opposite Bjorn Borg and Precise Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bjorn Borg position performs unexpectedly, Precise Biometrics 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 Precise Biometrics will offset losses from the drop in Precise Biometrics' long position.| Bjorn Borg vs. New Wave Group | Bjorn Borg vs. Clas Ohlson AB | Bjorn Borg vs. BE Group AB | Bjorn Borg vs. Betsson AB |
| Precise Biometrics vs. Fingerprint Cards AB | Precise Biometrics vs. Anoto Group AB | Precise Biometrics vs. Next Biometrics Group | Precise Biometrics vs. Idex ASA |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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