Correlation Between Rejlers AB and Bergman Beving
Can any of the company-specific risk be diversified away by investing in both Rejlers AB and Bergman Beving 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 Rejlers AB and Bergman Beving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rejlers AB and Bergman Beving AB, you can compare the effects of market volatilities on Rejlers AB and Bergman Beving 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 Rejlers AB with a short position of Bergman Beving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rejlers AB and Bergman Beving.
Diversification Opportunities for Rejlers AB and Bergman Beving
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rejlers and Bergman is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Rejlers AB and Bergman Beving AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergman Beving AB and Rejlers 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 Rejlers AB are associated (or correlated) with Bergman Beving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergman Beving AB has no effect on the direction of Rejlers AB i.e., Rejlers AB and Bergman Beving go up and down completely randomly.
Pair Corralation between Rejlers AB and Bergman Beving
Assuming the 90 days trading horizon Rejlers AB is expected to generate 6.1 times less return on investment than Bergman Beving. But when comparing it to its historical volatility, Rejlers AB is 1.06 times less risky than Bergman Beving. It trades about 0.02 of its potential returns per unit of risk. Bergman Beving AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,155 in Bergman Beving AB on August 30, 2024 and sell it today you would earn a total of 17,195 from holding Bergman Beving AB or generate 169.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rejlers AB vs. Bergman Beving AB
Performance |
| Timeline |
| Rejlers AB |
| Bergman Beving AB |
Rejlers AB and Bergman Beving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rejlers AB and Bergman Beving
The main advantage of trading using opposite Rejlers AB and Bergman Beving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rejlers AB position performs unexpectedly, Bergman Beving 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 Bergman Beving will offset losses from the drop in Bergman Beving's long position.| Rejlers AB vs. Proact IT Group | Rejlers AB vs. Nederman Holding AB | Rejlers AB vs. Sweco AB | Rejlers AB vs. Rottneros AB |
| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |