Correlation Between Stillfront Group and Boozt AB

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

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

Diversification Opportunities for Stillfront Group and Boozt AB

0.61

Correlation Coefficient

Stillfront Group  Boozt AB

Poor diversification

The 3 months correlation between Stillfront and Boozt is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Boozt AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boozt AB and Stillfront 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 Stillfront Group AB are associated (or correlated) with Boozt AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boozt AB has no effect on the direction of Stillfront Group i.e., Stillfront Group and Boozt AB go up and down completely randomly.

Pair Corralation between Stillfront Group and Boozt AB

Assuming the 90 days horizon Stillfront Group AB is expected to generate 1.22 times more return on investment than Boozt AB. However, Stillfront Group is 1.22 times more volatile than Boozt AB. It trades about 0.15 of its potential returns per unit of risk. Boozt AB is currently generating about 0.08 per unit of risk. If you would invest  661.00  in Stillfront Group AB on October 7, 2024 and sell it today you would earn a total of  210.00  from holding Stillfront Group AB or generate 31.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Stillfront Group AB  vs.  Boozt AB

Stillfront Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stillfront Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Boozt AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boozt AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Boozt AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stillfront Group and Boozt AB

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

The idea behind Stillfront Group AB and Boozt 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.