Correlation Between KABE Group and Industrivarden
Can any of the company-specific risk be diversified away by investing in both KABE Group and Industrivarden 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 Industrivarden 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 Industrivarden AB ser, you can compare the effects of market volatilities on KABE Group and Industrivarden 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 Industrivarden. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Industrivarden.
Diversification Opportunities for KABE Group and Industrivarden
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Industrivarden is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Industrivarden AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrivarden AB ser 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 Industrivarden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrivarden AB ser has no effect on the direction of KABE Group i.e., KABE Group and Industrivarden go up and down completely randomly.
Pair Corralation between KABE Group and Industrivarden
Assuming the 90 days trading horizon KABE Group AB is expected to generate 1.79 times more return on investment than Industrivarden. However, KABE Group is 1.79 times more volatile than Industrivarden AB ser. It trades about 0.05 of its potential returns per unit of risk. Industrivarden AB ser is currently generating about 0.07 per unit of risk. If you would invest 19,985 in KABE Group AB on August 26, 2024 and sell it today you would earn a total of 10,015 from holding KABE Group AB or generate 50.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Industrivarden AB ser
Performance |
| Timeline |
| KABE Group AB |
| Industrivarden AB ser |
KABE Group and Industrivarden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Industrivarden
The main advantage of trading using opposite KABE Group and Industrivarden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Industrivarden 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 Industrivarden will offset losses from the drop in Industrivarden'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 |
| Industrivarden vs. Norva24 Group AB | Industrivarden vs. KABE Group AB | Industrivarden vs. IAR Systems Group | Industrivarden vs. Clinical Laserthermia Systems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |