Correlation Between KABE Group and Link Prop
Can any of the company-specific risk be diversified away by investing in both KABE Group and Link Prop 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 KABE Group and Link Prop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Link Prop Investment, you can compare the effects of market volatilities on KABE Group and Link Prop 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 KABE Group with a short position of Link Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Link Prop.
Diversification Opportunities for KABE Group and Link Prop
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Link is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Link Prop Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Prop Investment and KABE 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 KABE Group AB are associated (or correlated) with Link Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Prop Investment has no effect on the direction of KABE Group i.e., KABE Group and Link Prop go up and down completely randomly.
Pair Corralation between KABE Group and Link Prop
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Link Prop. In addition to that, KABE Group is 1.45 times more volatile than Link Prop Investment. It trades about -0.1 of its total potential returns per unit of risk. Link Prop Investment is currently generating about 0.0 per unit of volatility. If you would invest 14,503 in Link Prop Investment on August 28, 2025 and sell it today you would lose (3.00) from holding Link Prop Investment or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Link Prop Investment
Performance |
| Timeline |
| KABE Group AB |
| Link Prop Investment |
KABE Group and Link Prop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Link Prop
The main advantage of trading using opposite KABE Group and Link Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Link Prop 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 Link Prop will offset losses from the drop in Link Prop's long position.| KABE Group vs. JLT Mobile Computers | KABE Group vs. High Coast Distillery | KABE Group vs. Fractal Gaming Group | KABE Group vs. Systemair AB |
| Link Prop vs. AB Sagax | Link Prop vs. KABE Group AB | Link Prop vs. USWE Sports AB | Link Prop vs. Lindab International 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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