Correlation Between Checkin Group and Unibap AB
Can any of the company-specific risk be diversified away by investing in both Checkin Group and Unibap AB 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 Checkin Group and Unibap AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Checkin Group AB and Unibap AB, you can compare the effects of market volatilities on Checkin Group and Unibap 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 Checkin Group with a short position of Unibap AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Checkin Group and Unibap AB.
Diversification Opportunities for Checkin Group and Unibap AB
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Checkin and Unibap is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Checkin Group AB and Unibap AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibap AB and Checkin 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 Checkin Group AB are associated (or correlated) with Unibap AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibap AB has no effect on the direction of Checkin Group i.e., Checkin Group and Unibap AB go up and down completely randomly.
Pair Corralation between Checkin Group and Unibap AB
Assuming the 90 days trading horizon Checkin Group AB is expected to under-perform the Unibap AB. But the stock apears to be less risky and, when comparing its historical volatility, Checkin Group AB is 1.01 times less risky than Unibap AB. The stock trades about -0.1 of its potential returns per unit of risk. The Unibap AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 264.00 in Unibap AB on September 25, 2024 and sell it today you would earn a total of 114.00 from holding Unibap AB or generate 43.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.22% |
Values | Daily Returns |
Checkin Group AB vs. Unibap AB
Performance |
Timeline |
Checkin Group AB |
Unibap AB |
Checkin Group and Unibap AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Checkin Group and Unibap AB
The main advantage of trading using opposite Checkin Group and Unibap AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Checkin Group position performs unexpectedly, Unibap 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 Unibap AB will offset losses from the drop in Unibap AB's long position.Checkin Group vs. Humble Group AB | Checkin Group vs. Enad Global 7 | Checkin Group vs. Goodbye Kansas Group | Checkin Group vs. Mekonomen AB |
Unibap AB vs. Hexatronic Group AB | Unibap AB vs. Instalco Intressenter AB | Unibap AB vs. NOTE AB | Unibap AB vs. Dometic Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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