Correlation Between Byggmax Group and Unlimited Travel

Can any of the company-specific risk be diversified away by investing in both Byggmax Group and Unlimited Travel 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 Byggmax Group and Unlimited Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Byggmax Group AB and Unlimited Travel Group, you can compare the effects of market volatilities on Byggmax Group and Unlimited Travel 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 Byggmax Group with a short position of Unlimited Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Unlimited Travel.

Diversification Opportunities for Byggmax Group and Unlimited Travel

0.48

Correlation Coefficient

Byggmax Group  Unlimited Travel

Very weak diversification

The 3 months correlation between Byggmax and Unlimited is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Unlimited Travel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlimited Travel and Byggmax 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 Byggmax Group AB are associated (or correlated) with Unlimited Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlimited Travel has no effect on the direction of Byggmax Group i.e., Byggmax Group and Unlimited Travel go up and down completely randomly.

Pair Corralation between Byggmax Group and Unlimited Travel

Assuming the 90 days trading horizon Byggmax Group AB is expected to generate 1.39 times more return on investment than Unlimited Travel. However, Byggmax Group is 1.39 times more volatile than Unlimited Travel Group. It trades about 0.16 of its potential returns per unit of risk. Unlimited Travel Group is currently generating about 0.07 per unit of risk. If you would invest  3,740  in Byggmax Group AB on September 23, 2024 and sell it today you would earn a total of  794.00  from holding Byggmax Group AB or generate 21.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Byggmax Group AB  vs.  Unlimited Travel Group

Byggmax Group AB

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Byggmax Group AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Byggmax Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Unlimited Travel

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Unlimited Travel Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Unlimited Travel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Byggmax Group and Unlimited Travel

The main advantage of trading using opposite Byggmax Group and Unlimited Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax Group position performs unexpectedly, Unlimited Travel 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 Unlimited Travel will offset losses from the drop in Unlimited Travel's long position.

The idea behind Byggmax Group AB and Unlimited Travel Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.