Correlation Between KABE Group and Awardit AB
Can any of the company-specific risk be diversified away by investing in both KABE Group and Awardit 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 KABE Group and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Awardit AB, you can compare the effects of market volatilities on KABE Group and Awardit 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 KABE Group with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Awardit AB.
Diversification Opportunities for KABE Group and Awardit AB
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KABE and Awardit is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and KABE 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 KABE Group AB are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of KABE Group i.e., KABE Group and Awardit AB go up and down completely randomly.
Pair Corralation between KABE Group and Awardit AB
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.77 times more return on investment than Awardit AB. However, KABE Group AB is 1.31 times less risky than Awardit AB. It trades about -0.02 of its potential returns per unit of risk. Awardit AB is currently generating about -0.04 per unit of risk. If you would invest 28,800 in KABE Group AB on December 2, 2024 and sell it today you would lose (600.00) from holding KABE Group AB or give up 2.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KABE Group AB vs. Awardit AB
Performance |
Timeline |
KABE Group AB |
Awardit AB |
KABE Group and Awardit AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KABE Group and Awardit AB
The main advantage of trading using opposite KABE Group and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Awardit 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 Awardit AB will offset losses from the drop in Awardit AB's long position.KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
Awardit AB vs. Svenska Handelsbanken AB | Awardit AB vs. Nordic Asia Investment | Awardit AB vs. Lea Bank AB | Awardit AB vs. Active Biotech 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |