Correlation Between Spectrumone Publ and Bambuser
Can any of the company-specific risk be diversified away by investing in both Spectrumone Publ and Bambuser 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 Spectrumone Publ and Bambuser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrumone publ AB and Bambuser AB, you can compare the effects of market volatilities on Spectrumone Publ and Bambuser 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 Spectrumone Publ with a short position of Bambuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrumone Publ and Bambuser.
Diversification Opportunities for Spectrumone Publ and Bambuser
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spectrumone and Bambuser is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Spectrumone publ AB and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser AB and Spectrumone Publ 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 Spectrumone publ AB are associated (or correlated) with Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Spectrumone Publ i.e., Spectrumone Publ and Bambuser go up and down completely randomly.
Pair Corralation between Spectrumone Publ and Bambuser
Assuming the 90 days trading horizon Spectrumone publ AB is expected to under-perform the Bambuser. But the stock apears to be less risky and, when comparing its historical volatility, Spectrumone publ AB is 1.39 times less risky than Bambuser. The stock trades about -0.01 of its potential returns per unit of risk. The Bambuser AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Bambuser AB on November 9, 2024 and sell it today you would earn a total of 2.00 from holding Bambuser AB or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrumone publ AB vs. Bambuser AB
Performance |
| Timeline |
| Spectrumone publ |
| Bambuser AB |
Spectrumone Publ and Bambuser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrumone Publ and Bambuser
The main advantage of trading using opposite Spectrumone Publ and Bambuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrumone Publ position performs unexpectedly, Bambuser 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 Bambuser will offset losses from the drop in Bambuser's long position.| Spectrumone Publ vs. Kancera AB | Spectrumone Publ vs. Terranet AB | Spectrumone Publ vs. Divio Technologies AB | Spectrumone Publ vs. Cantargia 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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