Correlation Between Stillfront Group and Adventure Box
Can any of the company-specific risk be diversified away by investing in both Stillfront Group and Adventure Box 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 Stillfront Group and Adventure Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stillfront Group AB and Adventure Box Technology, you can compare the effects of market volatilities on Stillfront Group and Adventure Box 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 Stillfront Group with a short position of Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Adventure Box.
Diversification Opportunities for Stillfront Group and Adventure Box
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stillfront and Adventure is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and Stillfront 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 Stillfront Group AB are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Stillfront Group i.e., Stillfront Group and Adventure Box go up and down completely randomly.
Pair Corralation between Stillfront Group and Adventure Box
Assuming the 90 days horizon Stillfront Group AB is expected to generate 0.81 times more return on investment than Adventure Box. However, Stillfront Group AB is 1.24 times less risky than Adventure Box. It trades about -0.17 of its potential returns per unit of risk. Adventure Box Technology is currently generating about -0.19 per unit of risk. If you would invest 826.00 in Stillfront Group AB on October 16, 2024 and sell it today you would lose (92.00) from holding Stillfront Group AB or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Adventure Box Technology
Performance |
| Timeline |
| Stillfront Group |
| Adventure Box Technology |
Stillfront Group and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Adventure Box
The main advantage of trading using opposite Stillfront Group and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.| Stillfront Group vs. Embracer Group AB | Stillfront Group vs. Sinch AB | Stillfront Group vs. Paradox Interactive AB | Stillfront Group vs. Evolution AB |
| Adventure Box vs. Flexion Mobile PLC | Adventure Box vs. Stillfront Group AB | Adventure Box vs. iZafe Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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