Correlation Between AB Volvo and KebNi AB
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By analyzing existing cross correlation between AB Volvo and KebNi AB, you can compare the effects of market volatilities on AB Volvo and KebNi 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Volvo and KebNi AB.
Diversification Opportunities for AB Volvo and KebNi AB
Excellent diversification
The 3 months correlation between VOLV-B and KebNi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AB Volvo and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of AB Volvo i.e., AB Volvo and KebNi AB go up and down completely randomly.
Pair Corralation between AB Volvo and KebNi AB
Assuming the 90 days trading horizon AB Volvo is expected to generate 0.38 times more return on investment than KebNi AB. However, AB Volvo is 2.6 times less risky than KebNi AB. It trades about 0.07 of its potential returns per unit of risk. KebNi AB is currently generating about 0.02 per unit of risk. If you would invest 17,639 in AB Volvo on September 2, 2024 and sell it today you would earn a total of 9,521 from holding AB Volvo or generate 53.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Volvo vs. KebNi AB
Performance |
| Timeline |
| AB Volvo |
| KebNi AB |
AB Volvo and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Volvo and KebNi AB
The main advantage of trading using opposite AB Volvo and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Volvo position performs unexpectedly, KebNi 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 KebNi AB will offset losses from the drop in KebNi 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 |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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