Correlation Between Stillfront Group and BHG Group
Can any of the company-specific risk be diversified away by investing in both Stillfront 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 Stillfront 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 Stillfront Group AB and BHG Group AB, you can compare the effects of market volatilities on Stillfront 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 Stillfront Group with a short position of BHG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and BHG Group.
Diversification Opportunities for Stillfront Group and BHG Group
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stillfront and BHG is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront 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 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 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 Stillfront Group i.e., Stillfront Group and BHG Group go up and down completely randomly.
Pair Corralation between Stillfront Group and BHG Group
Assuming the 90 days horizon Stillfront Group AB is expected to under-perform the BHG Group. But the stock apears to be less risky and, when comparing its historical volatility, Stillfront Group AB is 1.0 times less risky than BHG Group. The stock trades about -0.04 of its potential returns per unit of risk. The BHG Group AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,792 in BHG Group AB on August 25, 2024 and sell it today you would lose (33.00) from holding BHG Group AB or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stillfront Group AB vs. BHG Group AB
Performance |
| Timeline |
| Stillfront Group |
| BHG Group AB |
Stillfront Group and BHG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and BHG Group
The main advantage of trading using opposite Stillfront Group and BHG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront 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.| Stillfront Group vs. Flexion Mobile PLC | Stillfront Group vs. iZafe Group AB | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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