Correlation Between KABE Group and Sprint Bioscience
Can any of the company-specific risk be diversified away by investing in both KABE Group and Sprint Bioscience 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 Sprint Bioscience 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 Sprint Bioscience AB, you can compare the effects of market volatilities on KABE Group and Sprint Bioscience 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 Sprint Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Sprint Bioscience.
Diversification Opportunities for KABE Group and Sprint Bioscience
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Sprint is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Sprint Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprint Bioscience 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 Sprint Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint Bioscience has no effect on the direction of KABE Group i.e., KABE Group and Sprint Bioscience go up and down completely randomly.
Pair Corralation between KABE Group and Sprint Bioscience
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.35 times more return on investment than Sprint Bioscience. However, KABE Group AB is 2.86 times less risky than Sprint Bioscience. It trades about -0.13 of its potential returns per unit of risk. Sprint Bioscience AB is currently generating about -0.07 per unit of risk. If you would invest 31,599 in KABE Group AB on August 29, 2024 and sell it today you would lose (2,199) from holding KABE Group AB or give up 6.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Sprint Bioscience AB
Performance |
| Timeline |
| KABE Group AB |
| Sprint Bioscience |
KABE Group and Sprint Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Sprint Bioscience
The main advantage of trading using opposite KABE Group and Sprint Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Sprint Bioscience 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 Sprint Bioscience will offset losses from the drop in Sprint Bioscience'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 |
| Sprint Bioscience vs. Cantargia AB | Sprint Bioscience vs. Saniona AB | Sprint Bioscience vs. Acarix AS | Sprint Bioscience vs. Gabather 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |