Correlation Between FM Mattsson and Byggmax Group

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Can any of the company-specific risk be diversified away by investing in both FM Mattsson and Byggmax 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 FM Mattsson and Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FM Mattsson Mora and Byggmax Group AB, you can compare the effects of market volatilities on FM Mattsson and Byggmax 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 FM Mattsson with a short position of Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Byggmax Group.

Diversification Opportunities for FM Mattsson and Byggmax Group

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between FMM-B and Byggmax is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB and FM Mattsson 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 FM Mattsson Mora are associated (or correlated) with Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of FM Mattsson i.e., FM Mattsson and Byggmax Group go up and down completely randomly.

Pair Corralation between FM Mattsson and Byggmax Group

Assuming the 90 days trading horizon FM Mattsson Mora is expected to generate 1.94 times more return on investment than Byggmax Group. However, FM Mattsson is 1.94 times more volatile than Byggmax Group AB. It trades about 0.04 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.07 per unit of risk. If you would invest  5,465  in FM Mattsson Mora on September 2, 2025 and sell it today you would earn a total of  395.00  from holding FM Mattsson Mora or generate 7.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

FM Mattsson Mora  vs.  Byggmax Group AB

 Performance 
       Timeline  
FM Mattsson Mora 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in FM Mattsson Mora are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, FM Mattsson unveiled solid returns over the last few months and may actually be approaching a breakup point.
Byggmax Group AB 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Byggmax Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

FM Mattsson and Byggmax Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FM Mattsson and Byggmax Group

The main advantage of trading using opposite FM Mattsson and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Byggmax 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.
The idea behind FM Mattsson Mora and Byggmax Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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