Correlation Between Concentric and Beijer Ref
Can any of the company-specific risk be diversified away by investing in both Concentric and Beijer Ref 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 Ref 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 Ref AB, you can compare the effects of market volatilities on Concentric and Beijer Ref 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 Ref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentric and Beijer Ref.
Diversification Opportunities for Concentric and Beijer Ref
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concentric and Beijer is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Concentric AB and Beijer Ref AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Ref 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 Ref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Ref AB has no effect on the direction of Concentric i.e., Concentric and Beijer Ref go up and down completely randomly.
Pair Corralation between Concentric and Beijer Ref
Assuming the 90 days trading horizon Concentric AB is expected to generate 0.18 times more return on investment than Beijer Ref. However, Concentric AB is 5.51 times less risky than Beijer Ref. It trades about 0.05 of its potential returns per unit of risk. Beijer Ref AB is currently generating about 0.01 per unit of risk. If you would invest 22,950 in Concentric AB on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Concentric AB or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Concentric AB vs. Beijer Ref AB
Performance |
| Timeline |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Beijer Ref AB |
Concentric and Beijer Ref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentric and Beijer Ref
The main advantage of trading using opposite Concentric and Beijer Ref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentric position performs unexpectedly, Beijer Ref 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 Ref will offset losses from the drop in Beijer Ref's long position.| Concentric vs. Inwido AB | Concentric vs. Bufab Holding AB | Concentric vs. Beijer Alma AB | Concentric vs. Lindab International AB |
| Beijer Ref vs. Lagercrantz Group AB | Beijer Ref vs. Addtech AB | Beijer Ref vs. AddLife AB | Beijer Ref vs. Bufab Holding 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |