Correlation Between Bravida Holding and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Bravida Holding and Attendo AB 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 Bravida Holding and Attendo AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bravida Holding AB and Attendo AB, you can compare the effects of market volatilities on Bravida Holding and Attendo AB 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 Bravida Holding with a short position of Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravida Holding and Attendo AB.
Diversification Opportunities for Bravida Holding and Attendo AB
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bravida and Attendo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bravida Holding AB and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB and Bravida Holding 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 Bravida Holding AB are associated (or correlated) with Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Bravida Holding i.e., Bravida Holding and Attendo AB go up and down completely randomly.
Pair Corralation between Bravida Holding and Attendo AB
Assuming the 90 days trading horizon Bravida Holding is expected to generate 1.78 times less return on investment than Attendo AB. In addition to that, Bravida Holding is 1.77 times more volatile than Attendo AB. It trades about 0.02 of its total potential returns per unit of risk. Attendo AB is currently generating about 0.07 per unit of volatility. If you would invest 4,820 in Attendo AB on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Attendo AB or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bravida Holding AB vs. Attendo AB
Performance |
| Timeline |
| Bravida Holding AB |
| Attendo AB |
Bravida Holding and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bravida Holding and Attendo AB
The main advantage of trading using opposite Bravida Holding and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravida Holding position performs unexpectedly, Attendo AB 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 Attendo AB will offset losses from the drop in Attendo AB's long position.| Bravida Holding vs. Addtech AB | Bravida Holding vs. Teqnion AB | Bravida Holding vs. Vitec Software Group | Bravida Holding vs. Lagercrantz Group AB |
| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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