Correlation Between AB Volvo and Bactiguard Holding
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By analyzing existing cross correlation between AB Volvo and Bactiguard Holding AB, you can compare the effects of market volatilities on AB Volvo and Bactiguard Holding 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 AB Volvo with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Volvo and Bactiguard Holding.
Diversification Opportunities for AB Volvo and Bactiguard Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VOLV-A and Bactiguard is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AB Volvo and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and AB Volvo 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 AB Volvo are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of AB Volvo i.e., AB Volvo and Bactiguard Holding go up and down completely randomly.
Pair Corralation between AB Volvo and Bactiguard Holding
Assuming the 90 days trading horizon AB Volvo is expected to generate 0.41 times more return on investment than Bactiguard Holding. However, AB Volvo is 2.42 times less risky than Bactiguard Holding. It trades about 0.06 of its potential returns per unit of risk. Bactiguard Holding AB is currently generating about -0.05 per unit of risk. If you would invest 18,986 in AB Volvo on August 27, 2024 and sell it today you would earn a total of 8,314 from holding AB Volvo or generate 43.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Volvo vs. Bactiguard Holding AB
Performance |
| Timeline |
| AB Volvo |
| Bactiguard Holding |
AB Volvo and Bactiguard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Volvo and Bactiguard Holding
The main advantage of trading using opposite AB Volvo and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Volvo position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.| AB Volvo vs. Truecaller AB | AB Volvo vs. Hexatronic Group AB | AB Volvo vs. NCAB Group | AB Volvo vs. Troax Group AB |
| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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