Correlation Between FM Mattsson and Garo AB
Can any of the company-specific risk be diversified away by investing in both FM Mattsson and Garo AB 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 Garo AB 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 Garo AB, you can compare the effects of market volatilities on FM Mattsson and Garo AB 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 Garo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Garo AB.
Diversification Opportunities for FM Mattsson and Garo AB
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between FMM-B and Garo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Garo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garo 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 Garo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garo AB has no effect on the direction of FM Mattsson i.e., FM Mattsson and Garo AB go up and down completely randomly.
Pair Corralation between FM Mattsson and Garo AB
Assuming the 90 days trading horizon FM Mattsson Mora is expected to generate 0.91 times more return on investment than Garo AB. However, FM Mattsson Mora is 1.1 times less risky than Garo AB. It trades about -0.02 of its potential returns per unit of risk. Garo AB is currently generating about -0.06 per unit of risk. If you would invest 5,196 in FM Mattsson Mora on August 30, 2024 and sell it today you would lose (56.00) from holding FM Mattsson Mora or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FM Mattsson Mora vs. Garo AB
Performance |
| Timeline |
| FM Mattsson Mora |
| Garo AB |
FM Mattsson and Garo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FM Mattsson and Garo AB
The main advantage of trading using opposite FM Mattsson and Garo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Garo AB 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 Garo AB will offset losses from the drop in Garo AB'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 |
| Garo AB vs. Troax Group AB | Garo AB vs. NIBE Industrier AB | Garo AB vs. Hexatronic Group AB | Garo AB 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |