Correlation Between Concentric and Beijer Alma
Can any of the company-specific risk be diversified away by investing in both Concentric and Beijer Alma 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 Concentric and Beijer Alma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentric AB and Beijer Alma AB, you can compare the effects of market volatilities on Concentric and Beijer Alma 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 Concentric with a short position of Beijer Alma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentric and Beijer Alma.
Diversification Opportunities for Concentric and Beijer Alma
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concentric and Beijer is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Concentric AB and Beijer Alma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Alma AB and Concentric 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 Concentric AB are associated (or correlated) with Beijer Alma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Alma AB has no effect on the direction of Concentric i.e., Concentric and Beijer Alma go up and down completely randomly.
Pair Corralation between Concentric and Beijer Alma
Assuming the 90 days trading horizon Concentric AB is expected to generate 3.2 times more return on investment than Beijer Alma. However, Concentric is 3.2 times more volatile than Beijer Alma AB. It trades about 0.04 of its potential returns per unit of risk. Beijer Alma AB is currently generating about -0.11 per unit of risk. If you would invest 20,550 in Concentric AB on August 24, 2024 and sell it today you would earn a total of 2,450 from holding Concentric AB or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.91% |
| Values | Daily Returns |
Concentric AB vs. Beijer Alma AB
Performance |
| Timeline |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Beijer Alma AB |
Concentric and Beijer Alma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentric and Beijer Alma
The main advantage of trading using opposite Concentric and Beijer Alma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentric position performs unexpectedly, Beijer Alma 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 Beijer Alma will offset losses from the drop in Beijer Alma's long position.| Concentric vs. GomSpace Group AB | Concentric vs. Fingerprint Cards AB | Concentric vs. SolTech Energy Sweden | Concentric vs. Saniona AB |
| Beijer Alma vs. GomSpace Group AB | Beijer Alma vs. Fingerprint Cards AB | Beijer Alma vs. SolTech Energy Sweden | Beijer Alma vs. Saniona 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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