Correlation Between KABE Group and Investor
Can any of the company-specific risk be diversified away by investing in both KABE Group and Investor 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 Investor 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 Investor AB ser, you can compare the effects of market volatilities on KABE Group and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Investor.
Diversification Opportunities for KABE Group and Investor
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KABE and Investor is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of KABE Group i.e., KABE Group and Investor go up and down completely randomly.
Pair Corralation between KABE Group and Investor
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Investor. In addition to that, KABE Group is 2.61 times more volatile than Investor AB ser. It trades about -0.06 of its total potential returns per unit of risk. Investor AB ser is currently generating about -0.12 per unit of volatility. If you would invest 30,270 in Investor AB ser on August 25, 2024 and sell it today you would lose (660.00) from holding Investor AB ser or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
KABE Group AB vs. Investor AB ser
Performance |
| Timeline |
| KABE Group AB |
| Investor AB ser |
KABE Group and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Investor
The main advantage of trading using opposite KABE Group and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor'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 |
| Investor vs. Norva24 Group AB | Investor vs. KABE Group AB | Investor vs. IAR Systems Group | Investor 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |