Correlation Between KABE Group and Malmbergs Elektriska
Can any of the company-specific risk be diversified away by investing in both KABE Group and Malmbergs Elektriska 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 Malmbergs Elektriska 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 Malmbergs Elektriska AB, you can compare the effects of market volatilities on KABE Group and Malmbergs Elektriska 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 Malmbergs Elektriska. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Malmbergs Elektriska.
Diversification Opportunities for KABE Group and Malmbergs Elektriska
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between KABE and Malmbergs is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Malmbergs Elektriska AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malmbergs Elektriska 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 Malmbergs Elektriska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malmbergs Elektriska has no effect on the direction of KABE Group i.e., KABE Group and Malmbergs Elektriska go up and down completely randomly.
Pair Corralation between KABE Group and Malmbergs Elektriska
Assuming the 90 days trading horizon KABE Group AB is expected to generate 1.02 times more return on investment than Malmbergs Elektriska. However, KABE Group is 1.02 times more volatile than Malmbergs Elektriska AB. It trades about 0.05 of its potential returns per unit of risk. Malmbergs Elektriska AB is currently generating about -0.01 per unit of risk. If you would invest 19,985 in KABE Group AB on August 24, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Malmbergs Elektriska AB
Performance |
| Timeline |
| KABE Group AB |
| Malmbergs Elektriska |
KABE Group and Malmbergs Elektriska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Malmbergs Elektriska
The main advantage of trading using opposite KABE Group and Malmbergs Elektriska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Malmbergs Elektriska 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 Malmbergs Elektriska will offset losses from the drop in Malmbergs Elektriska'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 |
| Malmbergs Elektriska vs. Novotek AB | Malmbergs Elektriska vs. Svedbergs i Dalstorp | Malmbergs Elektriska vs. KABE Group AB | Malmbergs Elektriska vs. eWork 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |