Correlation Between BIMobject and Greater Than

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

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

Diversification Opportunities for BIMobject and Greater Than

0.76

Correlation Coefficient

BIMobject  Greater Than

Poor diversification

The 3 months correlation between BIMobject and Greater is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than 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 Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of BIMobject i.e., BIMobject and Greater Than go up and down completely randomly.

Pair Corralation between BIMobject and Greater Than

Assuming the 90 days trading horizon BIMobject AB is expected to generate 1.05 times more return on investment than Greater Than. However, BIMobject is 1.05 times more volatile than Greater Than AB. It trades about -0.13 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.39 per unit of risk. If you would invest  789.00  in BIMobject AB on April 21, 2025 and sell it today you would lose (164.00) from holding BIMobject AB or give up 20.79% of portfolio value over 90 days.

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

BIMobject AB  vs.  Greater Than 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.

Greater Than AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greater Than 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 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.

Pair Trading with BIMobject and Greater Than

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

The idea behind BIMobject AB and Greater Than 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.