Correlation Between BIMobject and Advenica

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

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

Diversification Opportunities for BIMobject and Advenica

-0.7

Correlation Coefficient

BIMobject  Advenica

Excellent diversification

The 3 months correlation between BIMobject and Advenica is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Advenica AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advenica AB and BIMobject 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 BIMobject AB are associated (or correlated) with Advenica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advenica AB has no effect on the direction of BIMobject i.e., BIMobject and Advenica go up and down completely randomly.

Pair Corralation between BIMobject and Advenica

Assuming the 90 days trading horizon BIMobject AB is expected to under-perform the Advenica. But the stock apears to be less risky and, when comparing its historical volatility, BIMobject AB is 1.53 times less risky than Advenica. The stock trades about -0.13 of its potential returns per unit of risk. The Advenica AB is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,950  in Advenica AB on April 21, 2025 and sell it today you would earn a total of  720.00  from holding Advenica AB or generate 36.92% return on investment over 90 days.

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

BIMobject AB  vs.  Advenica AB

BIMobject AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BIMobject AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary 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.

Advenica AB

Risk-Adjusted Performance

Good

Over the last 90 days Advenica AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Advenica unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BIMobject and Advenica

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

The idea behind BIMobject AB and Advenica 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.