Correlation Between Addtech AB and Train Alliance
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By analyzing existing cross correlation between Addtech AB and Train Alliance Sweden, you can compare the effects of market volatilities on Addtech AB and Train Alliance 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 Addtech AB with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and Train Alliance.
Diversification Opportunities for Addtech AB and Train Alliance
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addtech and Train is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden and Addtech AB 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 Addtech AB are associated (or correlated) with Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of Addtech AB i.e., Addtech AB and Train Alliance go up and down completely randomly.
Pair Corralation between Addtech AB and Train Alliance
Assuming the 90 days trading horizon Addtech AB is expected to under-perform the Train Alliance. But the stock apears to be less risky and, when comparing its historical volatility, Addtech AB is 1.24 times less risky than Train Alliance. The stock trades about -0.05 of its potential returns per unit of risk. The Train Alliance Sweden is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,825 in Train Alliance Sweden on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Train Alliance Sweden or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Addtech AB |
| Train Alliance Sweden |
Addtech AB and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and Train Alliance
The main advantage of trading using opposite Addtech AB and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance's long position.| Addtech AB vs. Indutrade AB | Addtech AB vs. Lifco AB | Addtech AB vs. Lagercrantz Group AB | Addtech AB vs. AddLife AB |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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