Correlation Between Corline Biomedical and Peab AB

Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Peab 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 Corline Biomedical and Peab AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Corline Biomedical and Peab AB

0.0

Correlation Coefficient

Corline Biomedical  Peab AB

Pay attention - limited upside

The 3 months correlation between Corline and Peab is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab AB and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Peab AB go up and down completely randomly.

Pair Corralation between Corline Biomedical and Peab AB

If you would invest  7,725  in Peab AB on December 22, 2024 and sell it today you would earn a total of  205.00  from holding Peab AB or generate 2.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Corline Biomedical AB  vs.  Peab AB

Corline Biomedical

Risk-Adjusted Performance

Insignificant

Over the last 90 days Corline Biomedical AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Corline Biomedical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Peab AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Peab AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Peab AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Corline Biomedical and Peab AB

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

The idea behind Corline Biomedical AB and Peab AB 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 Transaction History module to view history of all your transactions and understand their impact on performance.