Correlation Between Greater Than and BIMobject

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

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

Diversification Opportunities for Greater Than and BIMobject

0.76

Correlation Coefficient

Greater Than  BIMobject

Poor diversification

The 3 months correlation between Greater and BIMobject is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Greater Than AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Greater Than 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 Greater Than 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 Greater Than i.e., Greater Than and BIMobject go up and down completely randomly.

Pair Corralation between Greater Than and BIMobject

Assuming the 90 days trading horizon Greater Than AB is expected to under-perform the BIMobject. But the stock apears to be less risky and, when comparing its historical volatility, Greater Than AB is 1.05 times less risky than BIMobject. The stock trades about -0.39 of its potential returns per unit of risk. The BIMobject AB is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  789.00  in BIMobject AB on April 22, 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

Greater Than AB  vs.  BIMobject AB

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.

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 Greater Than and BIMobject

The main advantage of trading using opposite Greater Than and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Than 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 Greater Than 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 Transaction History module to view history of all your transactions and understand their impact on performance.