Correlation Between KABE Group and High Coast
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By analyzing existing cross correlation between KABE Group AB and High Coast Distillery, you can compare the effects of market volatilities on KABE Group and High Coast 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 High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and High Coast.
Diversification Opportunities for KABE Group and High Coast
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KABE and High is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery 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 High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of KABE Group i.e., KABE Group and High Coast go up and down completely randomly.
Pair Corralation between KABE Group and High Coast
Assuming the 90 days trading horizon KABE Group is expected to generate 1.4 times less return on investment than High Coast. But when comparing it to its historical volatility, KABE Group AB is 1.56 times less risky than High Coast. It trades about 0.01 of its potential returns per unit of risk. High Coast Distillery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,500 in High Coast Distillery on August 27, 2024 and sell it today you would lose (100.00) from holding High Coast Distillery or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. High Coast Distillery
Performance |
| Timeline |
| KABE Group AB |
| High Coast Distillery |
KABE Group and High Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and High Coast
The main advantage of trading using opposite KABE Group and High Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, High Coast 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 High Coast will offset losses from the drop in High Coast'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 |
| High Coast vs. Cint Group AB | High Coast vs. Nordic Waterproofing Holding | High Coast vs. Inwido AB | High Coast 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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