Correlation Between Flgger Group and Brd Klee
Can any of the company-specific risk be diversified away by investing in both Flgger Group and Brd Klee 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 Flgger Group and Brd Klee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flgger group AS and Brd Klee AS, you can compare the effects of market volatilities on Flgger Group and Brd Klee 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 Flgger Group with a short position of Brd Klee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flgger Group and Brd Klee.
Diversification Opportunities for Flgger Group and Brd Klee
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flgger and Brd is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Flgger group AS and Brd Klee AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brd Klee AS and Flgger 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 Flgger group AS are associated (or correlated) with Brd Klee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brd Klee AS has no effect on the direction of Flgger Group i.e., Flgger Group and Brd Klee go up and down completely randomly.
Pair Corralation between Flgger Group and Brd Klee
Assuming the 90 days trading horizon Flgger group AS is expected to generate 0.58 times more return on investment than Brd Klee. However, Flgger group AS is 1.71 times less risky than Brd Klee. It trades about 0.09 of its potential returns per unit of risk. Brd Klee AS is currently generating about 0.01 per unit of risk. If you would invest 32,600 in Flgger group AS on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Flgger group AS or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Flgger group AS vs. Brd Klee AS
Performance |
| Timeline |
| Flgger group AS |
| Brd Klee AS |
Flgger Group and Brd Klee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flgger Group and Brd Klee
The main advantage of trading using opposite Flgger Group and Brd Klee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flgger Group position performs unexpectedly, Brd Klee 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 Brd Klee will offset losses from the drop in Brd Klee's long position.| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas AS |
| Brd Klee vs. RIAS AS | Brd Klee vs. Investeringsselskabet Luxor AS | Brd Klee vs. Glunz Jensen | Brd Klee vs. SKAKO AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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