Correlation Between Unibap AB and Acconeer
Can any of the company-specific risk be diversified away by investing in both Unibap AB and Acconeer 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 Unibap AB and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibap AB and Acconeer AB, you can compare the effects of market volatilities on Unibap AB and Acconeer 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 Unibap AB with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibap AB and Acconeer.
Diversification Opportunities for Unibap AB and Acconeer
Pay attention - limited upside
The 3 months correlation between Unibap and Acconeer is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Unibap AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Unibap 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 Unibap AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Unibap AB i.e., Unibap AB and Acconeer go up and down completely randomly.
Pair Corralation between Unibap AB and Acconeer
Assuming the 90 days trading horizon Unibap AB is expected to generate 1.53 times more return on investment than Acconeer. However, Unibap AB is 1.53 times more volatile than Acconeer AB. It trades about 0.24 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.35 per unit of risk. If you would invest 294.00 in Unibap AB on August 27, 2024 and sell it today you would earn a total of 66.00 from holding Unibap AB or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibap AB vs. Acconeer AB
Performance |
| Timeline |
| Unibap AB |
| Acconeer AB |
Unibap AB and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibap AB and Acconeer
The main advantage of trading using opposite Unibap AB and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibap AB position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.| Unibap AB vs. Acconeer AB | Unibap AB vs. BIMobject AB | Unibap AB vs. Gapwaves AB Series | Unibap AB vs. Sedana Medical AB |
| Acconeer vs. Divio Technologies AB | Acconeer vs. XMReality AB | Acconeer vs. KABE Group AB | Acconeer vs. IAR Systems Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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