Correlation Between Kancera AB and BIMobject
Can any of the company-specific risk be diversified away by investing in both Kancera AB and BIMobject 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 Kancera AB and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and BIMobject AB, you can compare the effects of market volatilities on Kancera AB and BIMobject 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 Kancera AB with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and BIMobject.
Diversification Opportunities for Kancera AB and BIMobject
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kancera and BIMobject is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Kancera AB 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 Kancera AB are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Kancera AB i.e., Kancera AB and BIMobject go up and down completely randomly.
Pair Corralation between Kancera AB and BIMobject
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the BIMobject. In addition to that, Kancera AB is 7.85 times more volatile than BIMobject AB. It trades about -0.12 of its total potential returns per unit of risk. BIMobject AB is currently generating about 0.03 per unit of volatility. If you would invest 450.00 in BIMobject AB on September 1, 2024 and sell it today you would earn a total of 3.00 from holding BIMobject AB or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kancera AB vs. BIMobject AB
Performance |
| Timeline |
| Kancera AB |
| BIMobject AB |
Kancera AB and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and BIMobject
The main advantage of trading using opposite Kancera AB and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ AB |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish AB | BIMobject vs. FormPipe Software 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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