Correlation Between BE Group and SSAB AB

Can any of the company-specific risk be diversified away by investing in both BE Group and SSAB AB 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 BE Group and SSAB AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BE Group AB and SSAB AB, you can compare the effects of market volatilities on BE Group and SSAB 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 BE Group with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BE Group and SSAB AB.

Diversification Opportunities for BE Group and SSAB AB

-0.43

Correlation Coefficient

BE Group  SSAB AB

Very good diversification

The 3 months correlation between BEGR and SSAB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BE Group AB and SSAB AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB and BE 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 BE Group AB are associated (or correlated) with SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB has no effect on the direction of BE Group i.e., BE Group and SSAB AB go up and down completely randomly.

Pair Corralation between BE Group and SSAB AB

Assuming the 90 days trading horizon BE Group AB is expected to under-perform the SSAB AB. In addition to that, BE Group is 1.15 times more volatile than SSAB AB. It trades about -0.11 of its total potential returns per unit of risk. SSAB AB is currently generating about 0.03 per unit of volatility. If you would invest  5,742  in SSAB AB on April 24, 2025 and sell it today you would earn a total of  178.00  from holding SSAB AB or generate 3.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BE Group AB  vs.  SSAB AB

BE Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BE Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SSAB AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SSAB AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SSAB AB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BE Group and SSAB AB

The main advantage of trading using opposite BE Group and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BE Group position performs unexpectedly, SSAB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.

The idea behind BE Group AB and SSAB 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.