Correlation Between Unibap AB and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Unibap AB and Checkin Group 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 Unibap AB and Checkin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibap AB and Checkin Group AB, you can compare the effects of market volatilities on Unibap AB and Checkin Group 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 Unibap AB with a short position of Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibap AB and Checkin Group.
Diversification Opportunities for Unibap AB and Checkin Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unibap and Checkin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Unibap AB and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group AB and Unibap AB 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 Unibap AB are associated (or correlated) with Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Unibap AB i.e., Unibap AB and Checkin Group go up and down completely randomly.
Pair Corralation between Unibap AB and Checkin Group
Assuming the 90 days trading horizon Unibap AB is expected to generate 1.01 times more return on investment than Checkin Group. However, Unibap AB is 1.01 times more volatile than Checkin Group AB. It trades about 0.09 of its potential returns per unit of risk. Checkin Group AB is currently generating about -0.1 per unit of risk. 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 |
Unibap AB vs. Checkin Group AB
Performance |
Timeline |
Unibap AB |
Checkin Group AB |
Unibap AB and Checkin Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unibap AB and Checkin Group
The main advantage of trading using opposite Unibap AB and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibap AB position performs unexpectedly, Checkin Group 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 Checkin Group will offset losses from the drop in Checkin Group's long position.Unibap AB vs. Hexatronic Group AB | Unibap AB vs. Instalco Intressenter AB | Unibap AB vs. NOTE AB | Unibap AB vs. Dometic Group AB |
Checkin Group vs. Humble Group AB | Checkin Group vs. Enad Global 7 | Checkin Group vs. Goodbye Kansas Group | Checkin Group vs. Mekonomen 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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