Correlation Between Clas Ohlson and Kjell Group
Can any of the company-specific risk be diversified away by investing in both Clas Ohlson and Kjell 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 Clas Ohlson and Kjell Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clas Ohlson AB and Kjell Group AB, you can compare the effects of market volatilities on Clas Ohlson and Kjell 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 Clas Ohlson with a short position of Kjell Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clas Ohlson and Kjell Group.
Diversification Opportunities for Clas Ohlson and Kjell Group
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clas and Kjell is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Clas Ohlson AB and Kjell Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kjell Group AB and Clas Ohlson 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 Clas Ohlson AB are associated (or correlated) with Kjell Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kjell Group AB has no effect on the direction of Clas Ohlson i.e., Clas Ohlson and Kjell Group go up and down completely randomly.
Pair Corralation between Clas Ohlson and Kjell Group
Assuming the 90 days trading horizon Clas Ohlson is expected to generate 3.32 times less return on investment than Kjell Group. But when comparing it to its historical volatility, Clas Ohlson AB is 3.65 times less risky than Kjell Group. It trades about 0.2 of its potential returns per unit of risk. Kjell Group AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 870.00 in Kjell Group AB on November 11, 2024 and sell it today you would earn a total of 375.00 from holding Kjell Group AB or generate 43.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clas Ohlson AB vs. Kjell Group AB
Performance |
| Timeline |
| Clas Ohlson AB |
| Kjell Group AB |
Clas Ohlson and Kjell Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clas Ohlson and Kjell Group
The main advantage of trading using opposite Clas Ohlson and Kjell Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clas Ohlson position performs unexpectedly, Kjell 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 Kjell Group will offset losses from the drop in Kjell Group's long position.| Clas Ohlson vs. Tele2 AB | Clas Ohlson vs. Axfood AB | Clas Ohlson vs. Telia Company AB | Clas Ohlson vs. Byggmax Group AB |
| Kjell Group vs. Clas Ohlson AB | Kjell Group vs. Ctek AB | Kjell Group vs. Truecaller AB | Kjell Group vs. Dustin Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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