Correlation Between Byggmax Group and Studsvik
Can any of the company-specific risk be diversified away by investing in both Byggmax Group and Studsvik 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 Byggmax Group and Studsvik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byggmax Group AB and Studsvik AB, you can compare the effects of market volatilities on Byggmax Group and Studsvik 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 Byggmax Group with a short position of Studsvik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Studsvik.
Diversification Opportunities for Byggmax Group and Studsvik
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Byggmax and Studsvik is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Studsvik AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Studsvik AB and Byggmax 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 Byggmax Group AB are associated (or correlated) with Studsvik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Studsvik AB has no effect on the direction of Byggmax Group i.e., Byggmax Group and Studsvik go up and down completely randomly.
Pair Corralation between Byggmax Group and Studsvik
Assuming the 90 days trading horizon Byggmax Group AB is expected to under-perform the Studsvik. But the stock apears to be less risky and, when comparing its historical volatility, Byggmax Group AB is 1.63 times less risky than Studsvik. The stock trades about -0.06 of its potential returns per unit of risk. The Studsvik AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 18,350 in Studsvik AB on September 11, 2025 and sell it today you would earn a total of 11,250 from holding Studsvik AB or generate 61.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byggmax Group AB vs. Studsvik AB
Performance |
| Timeline |
| Byggmax Group AB |
| Studsvik AB |
Byggmax Group and Studsvik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byggmax Group and Studsvik
The main advantage of trading using opposite Byggmax Group and Studsvik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax Group position performs unexpectedly, Studsvik 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 Studsvik will offset losses from the drop in Studsvik's long position.| Byggmax Group vs. Svedbergs i Dalstorp | Byggmax Group vs. FM Mattsson Mora | Byggmax Group vs. Green Landscaping Group | Byggmax Group vs. Absolent Group AB |
| Studsvik vs. Powercell Sweden | Studsvik vs. CTT Systems AB | Studsvik vs. FM Mattsson Mora | Studsvik vs. Elanders 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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