Correlation Between Bambuser and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Bambuser and Checkin 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 Bambuser and Checkin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bambuser AB and Checkin Group AB, you can compare the effects of market volatilities on Bambuser and Checkin 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 Bambuser with a short position of Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bambuser and Checkin Group.
Diversification Opportunities for Bambuser and Checkin Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bambuser and Checkin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bambuser AB and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group AB and Bambuser 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 Bambuser AB are associated (or correlated) with Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Bambuser i.e., Bambuser and Checkin Group go up and down completely randomly.
Pair Corralation between Bambuser and Checkin Group
Assuming the 90 days trading horizon Bambuser AB is expected to generate 3.29 times more return on investment than Checkin Group. However, Bambuser is 3.29 times more volatile than Checkin Group AB. It trades about 0.18 of its potential returns per unit of risk. Checkin Group AB is currently generating about -0.03 per unit of risk. If you would invest 60.00 in Bambuser AB on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Bambuser AB or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Bambuser AB vs. Checkin Group AB
Performance |
| Timeline |
| Bambuser AB |
| Checkin Group AB |
Bambuser and Checkin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bambuser and Checkin Group
The main advantage of trading using opposite Bambuser and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bambuser position performs unexpectedly, Checkin 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 Checkin Group will offset losses from the drop in Checkin Group's long position.The idea behind Bambuser AB and Checkin 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.| Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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