Correlation Between Bufab Holding and Alpcot Holding
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By analyzing existing cross correlation between Bufab Holding AB and Alpcot Holding AB, you can compare the effects of market volatilities on Bufab Holding and Alpcot 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 Bufab Holding with a short position of Alpcot Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bufab Holding and Alpcot Holding.
Diversification Opportunities for Bufab Holding and Alpcot Holding
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bufab and Alpcot is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bufab Holding AB and Alpcot Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpcot Holding AB and Bufab Holding 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 Bufab Holding AB are associated (or correlated) with Alpcot Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpcot Holding AB has no effect on the direction of Bufab Holding i.e., Bufab Holding and Alpcot Holding go up and down completely randomly.
Pair Corralation between Bufab Holding and Alpcot Holding
Assuming the 90 days trading horizon Bufab Holding AB is expected to generate 0.45 times more return on investment than Alpcot Holding. However, Bufab Holding AB is 2.22 times less risky than Alpcot Holding. It trades about 0.05 of its potential returns per unit of risk. Alpcot Holding AB is currently generating about -0.02 per unit of risk. If you would invest 39,600 in Bufab Holding AB on September 25, 2024 and sell it today you would earn a total of 3,980 from holding Bufab Holding AB or generate 10.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bufab Holding AB vs. Alpcot Holding AB
Performance |
Timeline |
Bufab Holding AB |
Alpcot Holding AB |
Bufab Holding and Alpcot Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bufab Holding and Alpcot Holding
The main advantage of trading using opposite Bufab Holding and Alpcot Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bufab Holding position performs unexpectedly, Alpcot 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 Alpcot Holding will offset losses from the drop in Alpcot Holding's long position.Bufab Holding vs. Samhllsbyggnadsbolaget i Norden | Bufab Holding vs. Sinch AB | Bufab Holding vs. Evolution AB | Bufab Holding vs. NIBE Industrier AB |
Alpcot Holding vs. KebNi AB | Alpcot Holding vs. Checkin Group AB | Alpcot Holding vs. Freemelt Holding AB | Alpcot Holding vs. Unibap 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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