Correlation Between Footway Group and Boozt AB
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By analyzing existing cross correlation between Footway Group AB and Boozt AB, you can compare the effects of market volatilities on Footway Group and Boozt 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 Footway Group with a short position of Boozt AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Boozt AB.
Diversification Opportunities for Footway Group and Boozt AB
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Footway and Boozt is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and Boozt AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boozt AB and Footway 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 Footway Group AB are associated (or correlated) with Boozt AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boozt AB has no effect on the direction of Footway Group i.e., Footway Group and Boozt AB go up and down completely randomly.
Pair Corralation between Footway Group and Boozt AB
Assuming the 90 days trading horizon Footway Group AB is expected to under-perform the Boozt AB. In addition to that, Footway Group is 1.68 times more volatile than Boozt AB. It trades about -0.5 of its total potential returns per unit of risk. Boozt AB is currently generating about -0.1 per unit of volatility. If you would invest 12,670 in Boozt AB on November 27, 2024 and sell it today you would lose (330.00) from holding Boozt AB or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Footway Group AB vs. Boozt AB
Performance |
| Timeline |
| Footway Group AB |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Boozt AB |
Footway Group and Boozt AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and Boozt AB
The main advantage of trading using opposite Footway Group and Boozt AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, Boozt 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 Boozt AB will offset losses from the drop in Boozt AB's long position.| Footway Group vs. Upsales Technology AB | Footway Group vs. Train Alliance Sweden | Footway Group vs. Swedbank AB | Footway Group vs. Vitec Software Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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