Correlation Between AKA Brands and Allegroeu
Can any of the company-specific risk be diversified away by investing in both AKA Brands and Allegroeu 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 AKA Brands and Allegroeu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKA Brands Holding and Allegroeu SA, you can compare the effects of market volatilities on AKA Brands and Allegroeu 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 AKA Brands with a short position of Allegroeu. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKA Brands and Allegroeu.
Diversification Opportunities for AKA Brands and Allegroeu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AKA and Allegroeu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKA Brands Holding and Allegroeu SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegroeu SA and AKA Brands 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 AKA Brands Holding are associated (or correlated) with Allegroeu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegroeu SA has no effect on the direction of AKA Brands i.e., AKA Brands and Allegroeu go up and down completely randomly.
Pair Corralation between AKA Brands and Allegroeu
Considering the 90-day investment horizon AKA Brands Holding is expected to generate 2.46 times more return on investment than Allegroeu. However, AKA Brands is 2.46 times more volatile than Allegroeu SA. It trades about 0.04 of its potential returns per unit of risk. Allegroeu SA is currently generating about 0.05 per unit of risk. If you would invest 2,196 in AKA Brands Holding on August 25, 2024 and sell it today you would lose (78.00) from holding AKA Brands Holding or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AKA Brands Holding vs. Allegroeu SA
Performance |
| Timeline |
| AKA Brands Holding |
| Allegroeu SA |
AKA Brands and Allegroeu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKA Brands and Allegroeu
The main advantage of trading using opposite AKA Brands and Allegroeu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKA Brands position performs unexpectedly, Allegroeu 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 Allegroeu will offset losses from the drop in Allegroeu's long position.| AKA Brands vs. Brilliant Earth Group | AKA Brands vs. Lulus Fashion Lounge | AKA Brands vs. Torrid Holdings | AKA Brands vs. Aveanna Healthcare Holdings |
| Allegroeu vs. ASOS Plc | Allegroeu vs. BoohooCom PLC ADR | Allegroeu vs. ZALANDO SE ADR | Allegroeu vs. AKA Brands Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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