Correlation Between BTS Group and CellaVision

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

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

Diversification Opportunities for BTS Group and CellaVision

0.2

Correlation Coefficient

BTS Group  CellaVision

Modest diversification

The 3 months correlation between BTS and CellaVision is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group AB and CellaVision AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CellaVision AB and BTS 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 BTS Group AB are associated (or correlated) with CellaVision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CellaVision AB has no effect on the direction of BTS Group i.e., BTS Group and CellaVision go up and down completely randomly.

Pair Corralation between BTS Group and CellaVision

Assuming the 90 days trading horizon BTS Group AB is expected to under-perform the CellaVision. In addition to that, BTS Group is 1.26 times more volatile than CellaVision AB. It trades about -0.13 of its total potential returns per unit of risk. CellaVision AB is currently generating about -0.12 per unit of volatility. If you would invest  19,749  in CellaVision AB on May 5, 2025 and sell it today you would lose (2,689) from holding CellaVision AB or give up 13.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BTS Group AB  vs.  CellaVision AB

BTS Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BTS Group 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 September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CellaVision AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days CellaVision AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BTS Group and CellaVision

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

The idea behind BTS Group AB and CellaVision 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.