Correlation Between Rolling Optics and Bonava AB
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By analyzing existing cross correlation between Rolling Optics Holding and Bonava AB, you can compare the effects of market volatilities on Rolling Optics and Bonava AB 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 Rolling Optics with a short position of Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rolling Optics and Bonava AB.
Diversification Opportunities for Rolling Optics and Bonava AB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rolling and Bonava is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Rolling Optics Holding and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB and Rolling Optics 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 Rolling Optics Holding are associated (or correlated) with Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Rolling Optics i.e., Rolling Optics and Bonava AB go up and down completely randomly.
Pair Corralation between Rolling Optics and Bonava AB
Assuming the 90 days horizon Rolling Optics Holding is expected to generate 1.57 times more return on investment than Bonava AB. However, Rolling Optics is 1.57 times more volatile than Bonava AB. It trades about -0.06 of its potential returns per unit of risk. Bonava AB is currently generating about -0.25 per unit of risk. If you would invest 75.00 in Rolling Optics Holding on August 29, 2024 and sell it today you would lose (6.00) from holding Rolling Optics Holding or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rolling Optics Holding vs. Bonava AB
Performance |
| Timeline |
| Rolling Optics Holding |
| Bonava AB |
Rolling Optics and Bonava AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rolling Optics and Bonava AB
The main advantage of trading using opposite Rolling Optics and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rolling Optics position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.| Rolling Optics vs. Zwipe AS | Rolling Optics vs. Zaplox AB | Rolling Optics vs. XMReality AB | Rolling Optics vs. Ratos 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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