Correlation Between AB Volvo and Bonava AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between AB Volvo and Bonava AB, you can compare the effects of market volatilities on AB Volvo 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 AB Volvo with a short position of Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Volvo and Bonava AB.
Diversification Opportunities for AB Volvo and Bonava AB
Poor diversification
The 3 months correlation between VOLV-B and Bonava is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AB Volvo and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB 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 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 AB Volvo i.e., AB Volvo and Bonava AB go up and down completely randomly.
Pair Corralation between AB Volvo and Bonava AB
Assuming the 90 days trading horizon AB Volvo is expected to generate 0.66 times more return on investment than Bonava AB. However, AB Volvo is 1.52 times less risky than Bonava AB. It trades about 0.33 of its potential returns per unit of risk. Bonava AB is currently generating about 0.12 per unit of risk. If you would invest 29,200 in AB Volvo on November 28, 2024 and sell it today you would earn a total of 4,340 from holding AB Volvo or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AB Volvo vs. Bonava AB
Performance |
| Timeline |
| AB Volvo |
| Bonava AB |
AB Volvo and Bonava AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Volvo and Bonava AB
The main advantage of trading using opposite AB Volvo and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Volvo 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.| AB Volvo vs. AstraZeneca PLC | AB Volvo vs. H M Hennes | AB Volvo vs. Telefonaktiebolaget LM Ericsson | AB Volvo vs. Investor AB ser |
| Bonava AB vs. Bonava AB | Bonava AB vs. Atrium Ljungberg AB | Bonava AB vs. Attendo AB | Bonava AB vs. NCC 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |