Correlation Between Svenska Aerogel and Alleima AB
Can any of the company-specific risk be diversified away by investing in both Svenska Aerogel and Alleima AB 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 Svenska Aerogel and Alleima AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Svenska Aerogel Holding and Alleima AB, you can compare the effects of market volatilities on Svenska Aerogel and Alleima AB 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 Svenska Aerogel with a short position of Alleima AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Aerogel and Alleima AB.
Diversification Opportunities for Svenska Aerogel and Alleima AB
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Svenska and Alleima is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Aerogel Holding and Alleima AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleima AB and Svenska Aerogel 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 Svenska Aerogel Holding are associated (or correlated) with Alleima AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleima AB has no effect on the direction of Svenska Aerogel i.e., Svenska Aerogel and Alleima AB go up and down completely randomly.
Pair Corralation between Svenska Aerogel and Alleima AB
Assuming the 90 days trading horizon Svenska Aerogel Holding is expected to under-perform the Alleima AB. In addition to that, Svenska Aerogel is 2.68 times more volatile than Alleima AB. It trades about -0.04 of its total potential returns per unit of risk. Alleima AB is currently generating about 0.07 per unit of volatility. If you would invest 5,064 in Alleima AB on November 5, 2024 and sell it today you would earn a total of 4,161 from holding Alleima AB or generate 82.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Aerogel Holding vs. Alleima AB
Performance |
| Timeline |
| Svenska Aerogel Holding |
| Alleima AB |
Svenska Aerogel and Alleima AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Aerogel and Alleima AB
The main advantage of trading using opposite Svenska Aerogel and Alleima AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Aerogel position performs unexpectedly, Alleima AB 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 Alleima AB will offset losses from the drop in Alleima AB's long position.| Svenska Aerogel vs. SaltX Technology Holding | Svenska Aerogel vs. Nexam Chemical Holding | Svenska Aerogel vs. AAC Clyde Space | Svenska Aerogel vs. Triboron International AB |
| Alleima AB vs. Sandvik AB | Alleima AB vs. AB SKF | Alleima AB vs. Svenska Handelsbanken AB | Alleima AB vs. Essity 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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