Correlation Between KABE Group and Auriant Mining
Can any of the company-specific risk be diversified away by investing in both KABE Group and Auriant Mining 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 KABE Group and Auriant Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Auriant Mining AB, you can compare the effects of market volatilities on KABE Group and Auriant Mining 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 KABE Group with a short position of Auriant Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Auriant Mining.
Diversification Opportunities for KABE Group and Auriant Mining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Auriant is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Auriant Mining AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auriant Mining AB and KABE 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 KABE Group AB are associated (or correlated) with Auriant Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auriant Mining AB has no effect on the direction of KABE Group i.e., KABE Group and Auriant Mining go up and down completely randomly.
Pair Corralation between KABE Group and Auriant Mining
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Auriant Mining. But the stock apears to be less risky and, when comparing its historical volatility, KABE Group AB is 8.56 times less risky than Auriant Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Auriant Mining AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Auriant Mining AB on September 4, 2024 and sell it today you would lose (23.00) from holding Auriant Mining AB or give up 18.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
KABE Group AB vs. Auriant Mining AB
Performance |
| Timeline |
| KABE Group AB |
| Auriant Mining AB |
KABE Group and Auriant Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Auriant Mining
The main advantage of trading using opposite KABE Group and Auriant Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Auriant Mining 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 Auriant Mining will offset losses from the drop in Auriant Mining's long position.| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
| Auriant Mining vs. Arctic Gold Publ | Auriant Mining vs. aXichem AB | Auriant Mining vs. Avensia publ AB | Auriant Mining vs. KABE Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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