Correlation Between FM Mattsson and Byggmax Group
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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FM Mattsson Mora vs. Byggmax Group AB
Performance |
| Timeline |
| FM Mattsson Mora |
| Byggmax Group AB |
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.| FM Mattsson vs. Nordic Asia Investment | FM Mattsson vs. Catena Media plc | FM Mattsson vs. Media and Games | FM Mattsson vs. Gentoo Media |
| Byggmax Group vs. Gentoo Media | Byggmax Group vs. JLT Mobile Computers | Byggmax Group vs. Havsfrun Investment AB | Byggmax Group vs. Qiiwi Games 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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