Correlation Between VIMAB Group and Bonava AB
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By analyzing existing cross correlation between VIMAB Group AB and Bonava AB, you can compare the effects of market volatilities on VIMAB Group and Bonava AB 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 VIMAB Group with a short position of Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIMAB Group and Bonava AB.
Diversification Opportunities for VIMAB Group and Bonava AB
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VIMAB and Bonava is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding VIMAB Group AB and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB and VIMAB Group 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 VIMAB Group AB are associated (or correlated) with Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of VIMAB Group i.e., VIMAB Group and Bonava AB go up and down completely randomly.
Pair Corralation between VIMAB Group and Bonava AB
Assuming the 90 days trading horizon VIMAB Group AB is expected to under-perform the Bonava AB. In addition to that, VIMAB Group is 1.96 times more volatile than Bonava AB. It trades about -0.4 of its total potential returns per unit of risk. Bonava AB is currently generating about -0.25 per unit of volatility. If you would invest 915.00 in Bonava AB on August 29, 2024 and sell it today you would lose (143.00) from holding Bonava AB or give up 15.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIMAB Group AB vs. Bonava AB
Performance |
| Timeline |
| VIMAB Group AB |
| Bonava AB |
VIMAB Group and Bonava AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIMAB Group and Bonava AB
The main advantage of trading using opposite VIMAB Group and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIMAB Group position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.| VIMAB Group vs. Brilliant Future AB | VIMAB Group vs. Truecaller AB | VIMAB Group vs. KABE Group AB | VIMAB Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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