Correlation Between TOBA Investments and BankIn Bredygt

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

By analyzing existing cross correlation between TOBA Investments Bonds and BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on TOBA Investments and BankIn Bredygt 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 TOBA Investments with a short position of BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOBA Investments and BankIn Bredygt.

Diversification Opportunities for TOBA Investments and BankIn Bredygt

0.28

Correlation Coefficient

TOBA Investments  BankIn Bredygt

Modest diversification

The 3 months correlation between TOBA and BankIn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding TOBA Investments Bonds and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt and TOBA Investments 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 TOBA Investments Bonds are associated (or correlated) with BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of TOBA Investments i.e., TOBA Investments and BankIn Bredygt go up and down completely randomly.

Pair Corralation between TOBA Investments and BankIn Bredygt

Assuming the 90 days trading horizon TOBA Investments is expected to generate 4.92 times less return on investment than BankIn Bredygt. But when comparing it to its historical volatility, TOBA Investments Bonds is 7.14 times less risky than BankIn Bredygt. It trades about 0.24 of its potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  9,064  in BankIn Bredygt Klimaakt on April 24, 2025 and sell it today you would earn a total of  676.00  from holding BankIn Bredygt Klimaakt or generate 7.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	76.67%
Values	Daily Returns

TOBA Investments Bonds  vs.  BankIn Bredygt Klimaakt

TOBA Investments Bonds

Risk-Adjusted Performance

OK

Over the last 90 days TOBA Investments Bonds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, TOBA Investments is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BankIn Bredygt Klimaakt are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady forward indicators, BankIn Bredygt sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TOBA Investments and BankIn Bredygt

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

The idea behind TOBA Investments Bonds and BankIn Bredygt Klimaakt 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..