Correlation Between Stillfront Group and Adventure Box

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

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

Diversification Opportunities for Stillfront Group and Adventure Box

-0.16

Correlation Coefficient

Stillfront Group  Adventure Box

Good diversification

The 3 months correlation between Stillfront and Adventure is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and Stillfront 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 Stillfront Group AB are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Stillfront Group i.e., Stillfront Group and Adventure Box go up and down completely randomly.

Pair Corralation between Stillfront Group and Adventure Box

Assuming the 90 days horizon Stillfront Group AB is expected to generate 0.22 times more return on investment than Adventure Box. However, Stillfront Group AB is 4.46 times less risky than Adventure Box. It trades about 0.08 of its potential returns per unit of risk. Adventure Box Technology is currently generating about 0.0 per unit of risk. If you would invest  460.00  in Stillfront Group AB on April 24, 2025 and sell it today you would earn a total of  80.00  from holding Stillfront Group AB or generate 17.39% return on investment over 90 days.

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

Stillfront Group AB  vs.  Adventure Box Technology

Stillfront Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stillfront Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Adventure Box Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adventure Box Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Adventure Box is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stillfront Group and Adventure Box

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

The idea behind Stillfront Group AB and Adventure Box Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.