Correlation Between AcadeMedia and Alimak Hek
Can any of the company-specific risk be diversified away by investing in both AcadeMedia and Alimak Hek 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 AcadeMedia and Alimak Hek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcadeMedia AB and Alimak Hek Group, you can compare the effects of market volatilities on AcadeMedia and Alimak Hek 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 AcadeMedia with a short position of Alimak Hek. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcadeMedia and Alimak Hek.
Diversification Opportunities for AcadeMedia and Alimak Hek
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AcadeMedia and Alimak is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AcadeMedia AB and Alimak Hek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimak Hek Group and AcadeMedia 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 AcadeMedia AB are associated (or correlated) with Alimak Hek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimak Hek Group has no effect on the direction of AcadeMedia i.e., AcadeMedia and Alimak Hek go up and down completely randomly.
Pair Corralation between AcadeMedia and Alimak Hek
Assuming the 90 days trading horizon AcadeMedia AB is expected to under-perform the Alimak Hek. But the stock apears to be less risky and, when comparing its historical volatility, AcadeMedia AB is 1.16 times less risky than Alimak Hek. The stock trades about -0.16 of its potential returns per unit of risk. The Alimak Hek Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,340 in Alimak Hek Group on August 30, 2024 and sell it today you would earn a total of 500.00 from holding Alimak Hek Group or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AcadeMedia AB vs. Alimak Hek Group
Performance |
| Timeline |
| AcadeMedia AB |
| Alimak Hek Group |
AcadeMedia and Alimak Hek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcadeMedia and Alimak Hek
The main advantage of trading using opposite AcadeMedia and Alimak Hek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcadeMedia position performs unexpectedly, Alimak Hek 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 Alimak Hek will offset losses from the drop in Alimak Hek's long position.| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB |
| Alimak Hek vs. Inwido AB | Alimak Hek vs. Bufab Holding AB | Alimak Hek vs. Cloetta AB | Alimak Hek vs. Dometic Group AB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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