Correlation Between Rejlers AB and KABE Group
Can any of the company-specific risk be diversified away by investing in both Rejlers AB and KABE Group 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 KABE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rejlers AB and KABE Group AB, you can compare the effects of market volatilities on Rejlers AB and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rejlers AB and KABE Group.
Diversification Opportunities for Rejlers AB and KABE Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rejlers and KABE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Rejlers AB and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Rejlers AB i.e., Rejlers AB and KABE Group go up and down completely randomly.
Pair Corralation between Rejlers AB and KABE Group
Assuming the 90 days trading horizon Rejlers AB is expected to under-perform the KABE Group. But the stock apears to be less risky and, when comparing its historical volatility, Rejlers AB is 1.91 times less risky than KABE Group. The stock trades about -0.29 of its potential returns per unit of risk. The KABE Group AB is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 31,500 in KABE Group AB on September 1, 2024 and sell it today you would lose (1,600) from holding KABE Group AB or give up 5.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rejlers AB vs. KABE Group AB
Performance |
| Timeline |
| Rejlers AB |
| KABE Group AB |
Rejlers AB and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rejlers AB and KABE Group
The main advantage of trading using opposite Rejlers AB and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rejlers AB position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group'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 |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |