Correlation Between Acrinova and ALM Equity
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By analyzing existing cross correlation between Acrinova AB and ALM Equity AB, you can compare the effects of market volatilities on Acrinova and ALM Equity 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 Acrinova with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrinova and ALM Equity.
Diversification Opportunities for Acrinova and ALM Equity
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acrinova and ALM is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Acrinova AB and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity AB and Acrinova 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 Acrinova AB are associated (or correlated) with ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of Acrinova i.e., Acrinova and ALM Equity go up and down completely randomly.
Pair Corralation between Acrinova and ALM Equity
Assuming the 90 days trading horizon Acrinova AB is expected to generate 11.11 times more return on investment than ALM Equity. However, Acrinova is 11.11 times more volatile than ALM Equity AB. It trades about -0.01 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.19 per unit of risk. If you would invest 1,073 in Acrinova AB on September 5, 2024 and sell it today you would lose (133.00) from holding Acrinova AB or give up 12.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acrinova AB vs. ALM Equity AB
Performance |
| Timeline |
| Acrinova AB |
| ALM Equity AB |
Acrinova and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acrinova and ALM Equity
The main advantage of trading using opposite Acrinova and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acrinova position performs unexpectedly, ALM Equity 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 ALM Equity will offset losses from the drop in ALM Equity's long position.| Acrinova vs. Acrinova AB Series | Acrinova vs. K2A Knaust Andersson | Acrinova vs. Eastnine AB | Acrinova vs. Fastator AB |
| ALM Equity vs. Acrinova AB | ALM Equity vs. Nyfosa AB | ALM Equity vs. ALM Equity AB | ALM Equity vs. K2A Knaust Andersson |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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