Correlation Between Systemair and Bergman Beving
Can any of the company-specific risk be diversified away by investing in both Systemair and Bergman Beving 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 Systemair and Bergman Beving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Bergman Beving AB, you can compare the effects of market volatilities on Systemair and Bergman Beving 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 Systemair with a short position of Bergman Beving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Bergman Beving.
Diversification Opportunities for Systemair and Bergman Beving
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Systemair and Bergman is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Bergman Beving AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergman Beving AB and Systemair 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 Systemair AB are associated (or correlated) with Bergman Beving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergman Beving AB has no effect on the direction of Systemair i.e., Systemair and Bergman Beving go up and down completely randomly.
Pair Corralation between Systemair and Bergman Beving
Assuming the 90 days trading horizon Systemair is expected to generate 2.55 times less return on investment than Bergman Beving. In addition to that, Systemair is 1.04 times more volatile than Bergman Beving AB. It trades about 0.04 of its total potential returns per unit of risk. Bergman Beving AB is currently generating about 0.1 per unit of volatility. If you would invest 10,155 in Bergman Beving AB on August 30, 2024 and sell it today you would earn a total of 17,195 from holding Bergman Beving AB or generate 169.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Bergman Beving AB
Performance |
| Timeline |
| Systemair AB |
| Bergman Beving AB |
Systemair and Bergman Beving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Bergman Beving
The main advantage of trading using opposite Systemair and Bergman Beving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Bergman Beving 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 Bergman Beving will offset losses from the drop in Bergman Beving's long position.| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group AB |
| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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