Correlation Between Dustin Group and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Dustin Group and Byggmax 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 Dustin Group and Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dustin Group AB and Byggmax Group AB, you can compare the effects of market volatilities on Dustin Group and Byggmax 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 Dustin Group with a short position of Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dustin Group and Byggmax Group.
Diversification Opportunities for Dustin Group and Byggmax Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dustin and Byggmax is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dustin Group AB and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB and Dustin 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 Dustin Group AB are associated (or correlated) with Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Dustin Group i.e., Dustin Group and Byggmax Group go up and down completely randomly.
Pair Corralation between Dustin Group and Byggmax Group
Assuming the 90 days trading horizon Dustin Group AB is expected to under-perform the Byggmax Group. In addition to that, Dustin Group is 1.77 times more volatile than Byggmax Group AB. It trades about -0.39 of its total potential returns per unit of risk. Byggmax Group AB is currently generating about -0.01 per unit of volatility. If you would invest 4,468 in Byggmax Group AB on September 1, 2024 and sell it today you would lose (72.00) from holding Byggmax Group AB or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dustin Group AB vs. Byggmax Group AB
Performance |
| Timeline |
| Dustin Group AB |
| Byggmax Group AB |
Dustin Group and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dustin Group and Byggmax Group
The main advantage of trading using opposite Dustin Group and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dustin Group position performs unexpectedly, Byggmax 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Dustin Group vs. Clas Ohlson AB | Dustin Group vs. Byggmax Group AB | Dustin Group vs. Inwido AB | Dustin Group vs. Dometic Group AB |
| Byggmax Group vs. NetJobs Group AB | Byggmax Group vs. Mantex AB | Byggmax Group vs. Doxa AB | Byggmax Group vs. Clean Motion 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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