Correlation Between FM Mattsson and Bergman Beving
Can any of the company-specific risk be diversified away by investing in both FM Mattsson and Bergman Beving 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 FM Mattsson and Bergman Beving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FM Mattsson Mora and Bergman Beving AB, you can compare the effects of market volatilities on FM Mattsson and Bergman Beving 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 FM Mattsson with a short position of Bergman Beving. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Bergman Beving.
Diversification Opportunities for FM Mattsson and Bergman Beving
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMM-B and Bergman is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Bergman Beving AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergman Beving AB and FM Mattsson 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 FM Mattsson Mora are associated (or correlated) with Bergman Beving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergman Beving AB has no effect on the direction of FM Mattsson i.e., FM Mattsson and Bergman Beving go up and down completely randomly.
Pair Corralation between FM Mattsson and Bergman Beving
Assuming the 90 days trading horizon FM Mattsson is expected to generate 7.59 times less return on investment than Bergman Beving. But when comparing it to its historical volatility, FM Mattsson Mora is 1.03 times less risky than Bergman Beving. It trades about 0.01 of its potential returns per unit of risk. Bergman Beving AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,155 in Bergman Beving AB on August 30, 2024 and sell it today you would earn a total of 17,195 from holding Bergman Beving AB or generate 169.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FM Mattsson Mora vs. Bergman Beving AB
Performance |
| Timeline |
| FM Mattsson Mora |
| Bergman Beving AB |
FM Mattsson and Bergman Beving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FM Mattsson and Bergman Beving
The main advantage of trading using opposite FM Mattsson and Bergman Beving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Bergman Beving 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 Bergman Beving will offset losses from the drop in Bergman Beving's long position.| FM Mattsson vs. Hexagon AB | FM Mattsson vs. Investor AB ser | FM Mattsson vs. Investment AB Latour | FM Mattsson vs. ASSA ABLOY AB |
| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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