Correlation Between KABE Group and Brinova Fastigheter
Can any of the company-specific risk be diversified away by investing in both KABE Group and Brinova Fastigheter 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 Brinova Fastigheter 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 Brinova Fastigheter AB, you can compare the effects of market volatilities on KABE Group and Brinova Fastigheter 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 Brinova Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Brinova Fastigheter.
Diversification Opportunities for KABE Group and Brinova Fastigheter
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between KABE and Brinova is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Brinova Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinova Fastigheter 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 Brinova Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinova Fastigheter has no effect on the direction of KABE Group i.e., KABE Group and Brinova Fastigheter go up and down completely randomly.
Pair Corralation between KABE Group and Brinova Fastigheter
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.75 times more return on investment than Brinova Fastigheter. However, KABE Group AB is 1.33 times less risky than Brinova Fastigheter. It trades about 0.06 of its potential returns per unit of risk. Brinova Fastigheter AB is currently generating about 0.0 per unit of risk. If you would invest 18,596 in KABE Group AB on September 13, 2024 and sell it today you would earn a total of 11,204 from holding KABE Group AB or generate 60.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
KABE Group AB vs. Brinova Fastigheter AB
Performance |
| Timeline |
| KABE Group AB |
| Brinova Fastigheter |
KABE Group and Brinova Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Brinova Fastigheter
The main advantage of trading using opposite KABE Group and Brinova Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Brinova Fastigheter 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 Brinova Fastigheter will offset losses from the drop in Brinova Fastigheter'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 |
| Brinova Fastigheter vs. Corem Property Group | Brinova Fastigheter vs. ALM Equity AB | Brinova Fastigheter vs. Fastighets AB Balder | Brinova Fastigheter 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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