Correlation Between Clavister Holding and BIMobject
Can any of the company-specific risk be diversified away by investing in both Clavister Holding and BIMobject 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 Clavister Holding and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clavister Holding AB and BIMobject AB, you can compare the effects of market volatilities on Clavister Holding and BIMobject 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 Clavister Holding with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clavister Holding and BIMobject.
Diversification Opportunities for Clavister Holding and BIMobject
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clavister and BIMobject is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Clavister Holding AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Clavister 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 Clavister Holding AB are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Clavister Holding i.e., Clavister Holding and BIMobject go up and down completely randomly.
Pair Corralation between Clavister Holding and BIMobject
Assuming the 90 days trading horizon Clavister Holding AB is expected to generate 2.92 times more return on investment than BIMobject. However, Clavister Holding is 2.92 times more volatile than BIMobject AB. It trades about 0.21 of its potential returns per unit of risk. BIMobject AB is currently generating about -0.06 per unit of risk. If you would invest 154.00 in Clavister Holding AB on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Clavister Holding AB or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clavister Holding AB vs. BIMobject AB
Performance |
| Timeline |
| Clavister Holding |
| BIMobject AB |
Clavister Holding and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clavister Holding and BIMobject
The main advantage of trading using opposite Clavister Holding and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clavister Holding position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.| Clavister Holding vs. Lifco AB | Clavister Holding vs. Lagercrantz Group AB | Clavister Holding vs. Addtech AB | Clavister Holding vs. Instalco Intressenter AB |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |