Correlation Between Garo AB and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Garo AB and Byggmax Group 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 Garo AB and Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garo AB and Byggmax Group AB, you can compare the effects of market volatilities on Garo AB and Byggmax 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 Garo AB with a short position of Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garo AB and Byggmax Group.
Diversification Opportunities for Garo AB and Byggmax Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Garo and Byggmax is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Garo AB and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB and Garo AB 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 Garo AB are associated (or correlated) with Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Garo AB i.e., Garo AB and Byggmax Group go up and down completely randomly.
Pair Corralation between Garo AB and Byggmax Group
Assuming the 90 days trading horizon Garo AB is expected to generate 1.02 times more return on investment than Byggmax Group. However, Garo AB is 1.02 times more volatile than Byggmax Group AB. It trades about 0.11 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.01 per unit of risk. If you would invest 2,020 in Garo AB on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Garo AB or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garo AB vs. Byggmax Group AB
Performance |
| Timeline |
| Garo AB |
| Byggmax Group AB |
Garo AB and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garo AB and Byggmax Group
The main advantage of trading using opposite Garo AB and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garo AB position performs unexpectedly, Byggmax 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Garo AB vs. Troax Group AB | Garo AB vs. NIBE Industrier AB | Garo AB vs. Hexatronic Group AB | Garo AB vs. Bufab Holding AB |
| Byggmax Group vs. NetJobs Group AB | Byggmax Group vs. Mantex AB | Byggmax Group vs. Doxa AB | Byggmax Group vs. Clean Motion 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |