Correlation Between Unibap AB and Investor
Can any of the company-specific risk be diversified away by investing in both Unibap AB and Investor 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 Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibap AB and Investor AB ser, you can compare the effects of market volatilities on Unibap AB and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibap AB and Investor.
Diversification Opportunities for Unibap AB and Investor
Average diversification
The 3 months correlation between Unibap and Investor is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Unibap AB and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of Unibap AB i.e., Unibap AB and Investor go up and down completely randomly.
Pair Corralation between Unibap AB and Investor
Assuming the 90 days trading horizon Unibap AB is expected to under-perform the Investor. In addition to that, Unibap AB is 5.71 times more volatile than Investor AB ser. It trades about -0.03 of its total potential returns per unit of risk. Investor AB ser is currently generating about 0.1 per unit of volatility. If you would invest 19,711 in Investor AB ser on November 2, 2024 and sell it today you would earn a total of 12,044 from holding Investor AB ser or generate 61.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibap AB vs. Investor AB ser
Performance |
| Timeline |
| Unibap AB |
| Investor AB ser |
Unibap AB and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibap AB and Investor
The main advantage of trading using opposite Unibap AB and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibap AB position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor'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 |
| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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