Correlation Between KABE Group and Divio Technologies
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By analyzing existing cross correlation between KABE Group AB and Divio Technologies AB, you can compare the effects of market volatilities on KABE Group and Divio Technologies 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 Divio Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Divio Technologies.
Diversification Opportunities for KABE Group and Divio Technologies
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KABE and Divio is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Divio Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Divio Technologies 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 Divio Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Divio Technologies has no effect on the direction of KABE Group i.e., KABE Group and Divio Technologies go up and down completely randomly.
Pair Corralation between KABE Group and Divio Technologies
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.5 times more return on investment than Divio Technologies. However, KABE Group AB is 2.0 times less risky than Divio Technologies. It trades about -0.08 of its potential returns per unit of risk. Divio Technologies AB is currently generating about -0.18 per unit of risk. If you would invest 31,599 in KABE Group AB on August 29, 2024 and sell it today you would lose (1,399) from holding KABE Group AB or give up 4.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Divio Technologies AB
Performance |
| Timeline |
| KABE Group AB |
| Divio Technologies |
KABE Group and Divio Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Divio Technologies
The main advantage of trading using opposite KABE Group and Divio Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Divio Technologies 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 Divio Technologies will offset losses from the drop in Divio Technologies' 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 |
| Divio Technologies vs. Spectrumone publ AB | Divio Technologies vs. Media and Games | Divio Technologies vs. Enersize Oy | Divio Technologies vs. Cantargia 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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