Correlation Between Byggmax Group and Intel
Can any of the company-specific risk be diversified away by investing in both Byggmax Group and Intel 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 Byggmax Group and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byggmax Group AB and Intel, you can compare the effects of market volatilities on Byggmax Group and Intel 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 Byggmax Group with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Intel.
Diversification Opportunities for Byggmax Group and Intel
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Byggmax and Intel is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Byggmax Group 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 Byggmax Group AB are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Byggmax Group i.e., Byggmax Group and Intel go up and down completely randomly.
Pair Corralation between Byggmax Group and Intel
Assuming the 90 days horizon Byggmax Group AB is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Byggmax Group AB is 1.21 times less risky than Intel. The stock trades about -0.06 of its potential returns per unit of risk. The Intel is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,992 in Intel on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Intel or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Byggmax Group AB vs. Intel
Performance |
| Timeline |
| Byggmax Group AB |
| Intel |
Byggmax Group and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byggmax Group and Intel
The main advantage of trading using opposite Byggmax Group and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax Group position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Byggmax Group vs. CDN IMPERIAL BANK | Byggmax Group vs. PLAYTIKA HOLDING DL 01 | Byggmax Group vs. Seven West Media | Byggmax Group vs. Live Nation Entertainment |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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