Correlation Between Stillfront Group and BICO Group

Can any of the company-specific risk be diversified away by investing in both Stillfront Group and BICO Group 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 BICO Group 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 BICO Group AB, you can compare the effects of market volatilities on Stillfront Group and BICO Group 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 BICO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stillfront Group and BICO Group.

Diversification Opportunities for Stillfront Group and BICO Group

-0.31

Correlation Coefficient

Stillfront Group  BICO Group

Very good diversification

The 3 months correlation between Stillfront and BICO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stillfront Group AB and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB 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 BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Stillfront Group i.e., Stillfront Group and BICO Group go up and down completely randomly.

Pair Corralation between Stillfront Group and BICO Group

Assuming the 90 days horizon Stillfront Group AB is expected to generate 1.3 times more return on investment than BICO Group. However, Stillfront Group is 1.3 times more volatile than BICO Group AB. It trades about 0.15 of its potential returns per unit of risk. BICO Group AB is currently generating about -0.02 per unit of risk. If you would invest  460.00  in Stillfront Group AB on April 23, 2025 and sell it today you would earn a total of  162.00  from holding Stillfront Group AB or generate 35.22% 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.  BICO Group AB

Stillfront Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stillfront Group AB are ranked lower than 11 (%) 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.

BICO Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BICO Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BICO Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Stillfront Group and BICO Group

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

The idea behind Stillfront Group AB and BICO Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..