Correlation Between Millicom International and BHG Group
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By analyzing existing cross correlation between Millicom International Cellular and BHG Group AB, you can compare the effects of market volatilities on Millicom International 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 Millicom International with a short position of BHG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millicom International and BHG Group.
Diversification Opportunities for Millicom International and BHG Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Millicom and BHG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Millicom International Cellula 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 Millicom International 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 Millicom International Cellular 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 Millicom International i.e., Millicom International and BHG Group go up and down completely randomly.
Pair Corralation between Millicom International and BHG Group
Assuming the 90 days trading horizon Millicom International Cellular is expected to under-perform the BHG Group. But the stock apears to be less risky and, when comparing its historical volatility, Millicom International Cellular is 1.87 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millicom International Cellula vs. BHG Group AB
Performance |
| Timeline |
| Millicom International |
| BHG Group AB |
Millicom International and BHG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millicom International and BHG Group
The main advantage of trading using opposite Millicom International and BHG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millicom International 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.| Millicom International vs. Tele2 AB | Millicom International vs. Telia Company AB | Millicom International vs. Kinnevik Investment AB | Millicom International vs. Intrum Justitia AB |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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