Correlation Between Bravida Holding and Instalco Intressenter
Can any of the company-specific risk be diversified away by investing in both Bravida Holding and Instalco Intressenter 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 Instalco Intressenter 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 Instalco Intressenter AB, you can compare the effects of market volatilities on Bravida Holding and Instalco Intressenter 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 Instalco Intressenter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravida Holding and Instalco Intressenter.
Diversification Opportunities for Bravida Holding and Instalco Intressenter
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bravida and Instalco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bravida Holding AB and Instalco Intressenter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instalco Intressenter 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 Instalco Intressenter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instalco Intressenter has no effect on the direction of Bravida Holding i.e., Bravida Holding and Instalco Intressenter go up and down completely randomly.
Pair Corralation between Bravida Holding and Instalco Intressenter
Assuming the 90 days trading horizon Bravida Holding is expected to generate 1.87 times less return on investment than Instalco Intressenter. But when comparing it to its historical volatility, Bravida Holding AB is 2.72 times less risky than Instalco Intressenter. It trades about 0.16 of its potential returns per unit of risk. Instalco Intressenter AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,150 in Instalco Intressenter AB on December 1, 2024 and sell it today you would earn a total of 226.00 from holding Instalco Intressenter AB or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bravida Holding AB vs. Instalco Intressenter AB
Performance |
| Timeline |
| Bravida Holding AB |
| Instalco Intressenter |
Bravida Holding and Instalco Intressenter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bravida Holding and Instalco Intressenter
The main advantage of trading using opposite Bravida Holding and Instalco Intressenter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravida Holding position performs unexpectedly, Instalco Intressenter 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 Instalco Intressenter will offset losses from the drop in Instalco Intressenter's long position.| Bravida Holding vs. Nolato AB | Bravida Holding vs. Indutrade AB | Bravida Holding vs. HEXPOL AB | Bravida Holding vs. Addtech AB |
| Instalco Intressenter vs. Lifco AB | Instalco Intressenter vs. Sdiptech AB | Instalco Intressenter vs. Vitec Software Group | Instalco Intressenter vs. Addtech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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