Correlation Between Footway Group and KABE Group
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By analyzing existing cross correlation between Footway Group AB and KABE Group AB, you can compare the effects of market volatilities on Footway Group and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and KABE Group.
Diversification Opportunities for Footway Group and KABE Group
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Footway and KABE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Footway Group i.e., Footway Group and KABE Group go up and down completely randomly.
Pair Corralation between Footway Group and KABE Group
Assuming the 90 days trading horizon Footway Group AB is expected to under-perform the KABE Group. In addition to that, Footway Group is 1.61 times more volatile than KABE Group AB. It trades about -0.5 of its total potential returns per unit of risk. KABE Group AB is currently generating about -0.14 per unit of volatility. If you would invest 30,800 in KABE Group AB on November 27, 2024 and sell it today you would lose (1,200) from holding KABE Group AB or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
Footway Group AB vs. KABE Group AB
Performance |
| Timeline |
| Footway Group AB |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| KABE Group AB |
Footway Group and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and KABE Group
The main advantage of trading using opposite Footway Group and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group'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 |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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