Correlation Between Stillfront Group and Boozt AB
Can any of the company-specific risk be diversified away by investing in both Stillfront Group and Boozt AB 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 Boozt AB 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 Boozt AB, you can compare the effects of market volatilities on Stillfront Group and Boozt 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 Stillfront Group with a short position of Boozt AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and Boozt AB.
Diversification Opportunities for Stillfront Group and Boozt AB
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stillfront and Boozt is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Boozt AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boozt 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 Boozt AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boozt AB has no effect on the direction of Stillfront Group i.e., Stillfront Group and Boozt AB go up and down completely randomly.
Pair Corralation between Stillfront Group and Boozt AB
Assuming the 90 days horizon Stillfront Group AB is expected to generate 1.35 times more return on investment than Boozt AB. However, Stillfront Group is 1.35 times more volatile than Boozt AB. It trades about -0.02 of its potential returns per unit of risk. Boozt AB is currently generating about -0.04 per unit of risk. If you would invest 939.00 in Stillfront Group AB on August 29, 2024 and sell it today you would lose (197.00) from holding Stillfront Group AB or give up 20.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stillfront Group AB vs. Boozt AB
Performance |
| Timeline |
| Stillfront Group |
| Boozt AB |
Stillfront Group and Boozt AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stillfront Group and Boozt AB
The main advantage of trading using opposite Stillfront Group and Boozt AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stillfront Group position performs unexpectedly, Boozt 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 Boozt AB will offset losses from the drop in Boozt AB'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 |
| Boozt AB vs. Thule Group AB | Boozt AB vs. Sinch AB | Boozt AB vs. Hexatronic Group AB | Boozt AB vs. NIBE Industrier 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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