Correlation Between KABE Group and Jetpak Top
Can any of the company-specific risk be diversified away by investing in both KABE Group and Jetpak Top 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 Jetpak Top 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 Jetpak Top Holding, you can compare the effects of market volatilities on KABE Group and Jetpak Top 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 Jetpak Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Jetpak Top.
Diversification Opportunities for KABE Group and Jetpak Top
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KABE and Jetpak is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Jetpak Top Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetpak Top Holding 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 Jetpak Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetpak Top Holding has no effect on the direction of KABE Group i.e., KABE Group and Jetpak Top go up and down completely randomly.
Pair Corralation between KABE Group and Jetpak Top
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Jetpak Top. In addition to that, KABE Group is 1.99 times more volatile than Jetpak Top Holding. It trades about -0.09 of its total potential returns per unit of risk. Jetpak Top Holding is currently generating about -0.07 per unit of volatility. If you would invest 10,600 in Jetpak Top Holding on September 1, 2024 and sell it today you would lose (200.00) from holding Jetpak Top Holding or give up 1.89% 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. Jetpak Top Holding
Performance |
| Timeline |
| KABE Group AB |
| Jetpak Top Holding |
KABE Group and Jetpak Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Jetpak Top
The main advantage of trading using opposite KABE Group and Jetpak Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Jetpak Top 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 Jetpak Top will offset losses from the drop in Jetpak Top'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 |
| Jetpak Top vs. Alimak Hek Group | Jetpak Top vs. Balco Group AB | Jetpak Top vs. Bulten AB | Jetpak Top vs. Rejlers 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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