Correlation Between Bravida Holding and Bonava AB
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By analyzing existing cross correlation between Bravida Holding AB and Bonava AB, you can compare the effects of market volatilities on Bravida Holding and Bonava 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 Bravida Holding with a short position of Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravida Holding and Bonava AB.
Diversification Opportunities for Bravida Holding and Bonava AB
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bravida and Bonava is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bravida Holding AB and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava AB and Bravida Holding 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 Bravida Holding AB are associated (or correlated) with Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of Bravida Holding i.e., Bravida Holding and Bonava AB go up and down completely randomly.
Pair Corralation between Bravida Holding and Bonava AB
Assuming the 90 days trading horizon Bravida Holding AB is expected to generate 0.65 times more return on investment than Bonava AB. However, Bravida Holding AB is 1.54 times less risky than Bonava AB. It trades about 0.61 of its potential returns per unit of risk. Bonava AB is currently generating about -0.04 per unit of risk. If you would invest 6,729 in Bravida Holding AB on February 21, 2024 and sell it today you would earn a total of 1,566 from holding Bravida Holding AB or generate 23.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Bravida Holding AB vs. Bonava AB
Performance |
Timeline |
Bravida Holding AB |
Bonava AB |
Bravida Holding and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bravida Holding and Bonava AB
The main advantage of trading using opposite Bravida Holding and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravida Holding position performs unexpectedly, Bonava 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 Bonava AB will offset losses from the drop in Bonava AB's long position.Bravida Holding vs. Ambu AS | Bravida Holding vs. Bavarian Nordic | Bravida Holding vs. Fingerprint Cards AB | Bravida Holding vs. Zealand Pharma AS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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