Correlation Between Bambuser and XMReality
Can any of the company-specific risk be diversified away by investing in both Bambuser and XMReality 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 XMReality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bambuser AB and XMReality AB, you can compare the effects of market volatilities on Bambuser and XMReality 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 XMReality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bambuser and XMReality.
Diversification Opportunities for Bambuser and XMReality
Poor diversification
The 3 months correlation between Bambuser and XMReality is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bambuser AB and XMReality AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XMReality 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 XMReality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XMReality AB has no effect on the direction of Bambuser i.e., Bambuser and XMReality go up and down completely randomly.
Pair Corralation between Bambuser and XMReality
Assuming the 90 days trading horizon Bambuser AB is expected to generate 0.68 times more return on investment than XMReality. However, Bambuser AB is 1.47 times less risky than XMReality. It trades about -0.03 of its potential returns per unit of risk. XMReality AB is currently generating about -0.06 per unit of risk. If you would invest 184.00 in Bambuser AB on August 26, 2024 and sell it today you would lose (126.00) from holding Bambuser AB or give up 68.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bambuser AB vs. XMReality AB
Performance |
| Timeline |
| Bambuser AB |
| XMReality AB |
Bambuser and XMReality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bambuser and XMReality
The main advantage of trading using opposite Bambuser and XMReality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bambuser position performs unexpectedly, XMReality 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 XMReality will offset losses from the drop in XMReality's long position.| Bambuser vs. Spectrumone publ AB | Bambuser vs. Media and Games | Bambuser vs. Enersize Oy | Bambuser vs. Cantargia AB |
| XMReality vs. Tangiamo Touch Technology | XMReality vs. Zaplox AB | XMReality vs. Alligator Bioscience AB | XMReality vs. Garo 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance |