Correlation Between Sonetel AB and BIMobject
Can any of the company-specific risk be diversified away by investing in both Sonetel AB and BIMobject 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 Sonetel AB and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonetel AB and BIMobject AB, you can compare the effects of market volatilities on Sonetel AB and BIMobject 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 Sonetel AB with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonetel AB and BIMobject.
Diversification Opportunities for Sonetel AB and BIMobject
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sonetel and BIMobject is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sonetel AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Sonetel AB 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 Sonetel AB are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Sonetel AB i.e., Sonetel AB and BIMobject go up and down completely randomly.
Pair Corralation between Sonetel AB and BIMobject
Assuming the 90 days trading horizon Sonetel AB is expected to under-perform the BIMobject. But the stock apears to be less risky and, when comparing its historical volatility, Sonetel AB is 1.04 times less risky than BIMobject. The stock trades about 0.0 of its potential returns per unit of risk. The BIMobject AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 287.00 in BIMobject AB on September 3, 2024 and sell it today you would earn a total of 166.00 from holding BIMobject AB or generate 57.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonetel AB vs. BIMobject AB
Performance |
| Timeline |
| Sonetel AB |
| BIMobject AB |
Sonetel AB and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonetel AB and BIMobject
The main advantage of trading using opposite Sonetel AB and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonetel AB position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.| Sonetel AB vs. SECITS Holding AB | Sonetel AB vs. Zaplox AB | Sonetel AB vs. XMReality AB | Sonetel AB vs. Nicoccino Holding AB |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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