Correlation Between Atrium Ljungberg and SEAZEN GROUP
Can any of the company-specific risk be diversified away by investing in both Atrium Ljungberg and SEAZEN 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 Atrium Ljungberg and SEAZEN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Ljungberg AB and SEAZEN GROUP LTD, you can compare the effects of market volatilities on Atrium Ljungberg and SEAZEN 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 Atrium Ljungberg with a short position of SEAZEN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and SEAZEN GROUP.
Diversification Opportunities for Atrium Ljungberg and SEAZEN GROUP
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atrium and SEAZEN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and SEAZEN GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAZEN GROUP LTD and Atrium Ljungberg 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 Atrium Ljungberg AB are associated (or correlated) with SEAZEN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAZEN GROUP LTD has no effect on the direction of Atrium Ljungberg i.e., Atrium Ljungberg and SEAZEN GROUP go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and SEAZEN GROUP
Assuming the 90 days horizon Atrium Ljungberg AB is expected to generate 0.44 times more return on investment than SEAZEN GROUP. However, Atrium Ljungberg AB is 2.26 times less risky than SEAZEN GROUP. It trades about -0.21 of its potential returns per unit of risk. SEAZEN GROUP LTD is currently generating about -0.14 per unit of risk. If you would invest 2,025 in Atrium Ljungberg AB on October 14, 2024 and sell it today you would lose (383.00) from holding Atrium Ljungberg AB or give up 18.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Ljungberg AB vs. SEAZEN GROUP LTD
Performance |
| Timeline |
| Atrium Ljungberg |
| SEAZEN GROUP LTD |
Atrium Ljungberg and SEAZEN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Ljungberg and SEAZEN GROUP
The main advantage of trading using opposite Atrium Ljungberg and SEAZEN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg position performs unexpectedly, SEAZEN 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 SEAZEN GROUP will offset losses from the drop in SEAZEN GROUP's long position.| Atrium Ljungberg vs. Eidesvik Offshore ASA | Atrium Ljungberg vs. BW OFFSHORE LTD | Atrium Ljungberg vs. PT Wintermar Offshore | Atrium Ljungberg vs. Nexstar Media Group |
| SEAZEN GROUP vs. Highlight Communications AG | SEAZEN GROUP vs. SK TELECOM TDADR | SEAZEN GROUP vs. Cairo Communication SpA | SEAZEN GROUP vs. Entravision Communications |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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