Correlation Between Gapwaves and BIMobject
Can any of the company-specific risk be diversified away by investing in both Gapwaves and BIMobject 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 Gapwaves and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gapwaves AB Series and BIMobject AB, you can compare the effects of market volatilities on Gapwaves and BIMobject 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 Gapwaves with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gapwaves and BIMobject.
Diversification Opportunities for Gapwaves and BIMobject
Average diversification
The 3 months correlation between Gapwaves and BIMobject is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gapwaves AB Series and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Gapwaves 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 Gapwaves AB Series are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Gapwaves i.e., Gapwaves and BIMobject go up and down completely randomly.
Pair Corralation between Gapwaves and BIMobject
Assuming the 90 days trading horizon Gapwaves AB Series is expected to under-perform the BIMobject. But the stock apears to be less risky and, when comparing its historical volatility, Gapwaves AB Series is 1.23 times less risky than BIMobject. The stock trades about -0.03 of its potential returns per unit of risk. The BIMobject AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 300.00 in BIMobject AB on September 26, 2024 and sell it today you would earn a total of 150.00 from holding BIMobject AB or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gapwaves AB Series vs. BIMobject AB
Performance |
Timeline |
Gapwaves AB Series |
BIMobject AB |
Gapwaves and BIMobject Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gapwaves and BIMobject
The main advantage of trading using opposite Gapwaves and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gapwaves position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.Gapwaves vs. Sivers IMA Holding | Gapwaves vs. SaltX Technology Holding | Gapwaves vs. Acconeer AB | Gapwaves vs. Fingerprint Cards AB |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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