Correlation Between Rugvista Group and BHG Group
Can any of the company-specific risk be diversified away by investing in both Rugvista Group and BHG 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 Rugvista Group and BHG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rugvista Group AB and BHG Group AB, you can compare the effects of market volatilities on Rugvista Group and BHG 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 Rugvista Group with a short position of BHG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rugvista Group and BHG Group.
Diversification Opportunities for Rugvista Group and BHG Group
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rugvista and BHG is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Rugvista Group AB and BHG Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHG Group AB and Rugvista 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 Rugvista Group AB are associated (or correlated) with BHG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHG Group AB has no effect on the direction of Rugvista Group i.e., Rugvista Group and BHG Group go up and down completely randomly.
Pair Corralation between Rugvista Group and BHG Group
Assuming the 90 days trading horizon Rugvista Group is expected to generate 2.76 times less return on investment than BHG Group. But when comparing it to its historical volatility, Rugvista Group AB is 2.33 times less risky than BHG Group. It trades about 0.16 of its potential returns per unit of risk. BHG Group AB is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,082 in BHG Group AB on November 27, 2024 and sell it today you would earn a total of 430.00 from holding BHG Group AB or generate 20.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rugvista Group AB vs. BHG Group AB
Performance |
| Timeline |
| Rugvista Group AB |
| BHG Group AB |
Rugvista Group and BHG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rugvista Group and BHG Group
The main advantage of trading using opposite Rugvista Group and BHG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rugvista Group position performs unexpectedly, BHG 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 BHG Group will offset losses from the drop in BHG Group's long position.| Rugvista Group vs. Cint Group AB | Rugvista Group vs. Desenio Group AB | Rugvista Group vs. Fractal Gaming Group | Rugvista Group vs. Pierce Group AB |
| BHG Group vs. Sinch AB | BHG Group vs. Byggmax Group AB | BHG Group vs. Stillfront Group AB | BHG Group vs. Boozt 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.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |