Correlation Between Crunchfish and BIMobject

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

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

Diversification Opportunities for Crunchfish and BIMobject

-0.61

Correlation Coefficient

Crunchfish  BIMobject

Excellent diversification

The 3 months correlation between Crunchfish and BIMobject is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Crunchfish AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Crunchfish 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 Crunchfish AB are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Crunchfish i.e., Crunchfish and BIMobject go up and down completely randomly.

Pair Corralation between Crunchfish and BIMobject

Assuming the 90 days trading horizon Crunchfish AB is expected to generate 4.31 times more return on investment than BIMobject. However, Crunchfish is 4.31 times more volatile than BIMobject AB. It trades about 0.26 of its potential returns per unit of risk. BIMobject AB is currently generating about -0.11 per unit of risk. If you would invest  94.00  in Crunchfish AB on April 23, 2025 and sell it today you would earn a total of  324.00  from holding Crunchfish AB or generate 344.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Crunchfish AB  vs.  BIMobject AB

Crunchfish AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Crunchfish AB are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Crunchfish unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Crunchfish and BIMobject

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

The idea behind Crunchfish AB and BIMobject 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.