Correlation Between Embracer Group and Bambuser
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By analyzing existing cross correlation between Embracer Group AB and Bambuser AB, you can compare the effects of market volatilities on Embracer Group and Bambuser 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 Embracer Group with a short position of Bambuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Bambuser.
Diversification Opportunities for Embracer Group and Bambuser
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Bambuser is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser AB and Embracer 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 Embracer Group AB are associated (or correlated) with Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Embracer Group i.e., Embracer Group and Bambuser go up and down completely randomly.
Pair Corralation between Embracer Group and Bambuser
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.57 times more return on investment than Bambuser. However, Embracer Group AB is 1.76 times less risky than Bambuser. It trades about -0.07 of its potential returns per unit of risk. Bambuser AB is currently generating about -0.05 per unit of risk. If you would invest 3,071 in Embracer Group AB on September 1, 2024 and sell it today you would lose (194.00) from holding Embracer Group AB or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Bambuser AB
Performance |
| Timeline |
| Embracer Group AB |
| Bambuser AB |
Embracer Group and Bambuser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Bambuser
The main advantage of trading using opposite Embracer Group and Bambuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Bambuser 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 Bambuser will offset losses from the drop in Bambuser's long position.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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