Correlation Between Alandsbanken Abp and Trainers House
Can any of the company-specific risk be diversified away by investing in both Alandsbanken Abp and Trainers House 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 Alandsbanken Abp and Trainers House into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alandsbanken Abp B and Trainers House Oyj, you can compare the effects of market volatilities on Alandsbanken Abp and Trainers House 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 Alandsbanken Abp with a short position of Trainers House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alandsbanken Abp and Trainers House.
Diversification Opportunities for Alandsbanken Abp and Trainers House
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alandsbanken and Trainers is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Alandsbanken Abp B and Trainers House Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trainers House Oyj and Alandsbanken Abp 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 Alandsbanken Abp B are associated (or correlated) with Trainers House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trainers House Oyj has no effect on the direction of Alandsbanken Abp i.e., Alandsbanken Abp and Trainers House go up and down completely randomly.
Pair Corralation between Alandsbanken Abp and Trainers House
Assuming the 90 days trading horizon Alandsbanken Abp B is expected to generate 0.31 times more return on investment than Trainers House. However, Alandsbanken Abp B is 3.23 times less risky than Trainers House. It trades about -0.06 of its potential returns per unit of risk. Trainers House Oyj is currently generating about -0.02 per unit of risk. If you would invest 3,400 in Alandsbanken Abp B on August 28, 2024 and sell it today you would lose (30.00) from holding Alandsbanken Abp B or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alandsbanken Abp B vs. Trainers House Oyj
Performance |
| Timeline |
| Alandsbanken Abp B |
| Trainers House Oyj |
Alandsbanken Abp and Trainers House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alandsbanken Abp and Trainers House
The main advantage of trading using opposite Alandsbanken Abp and Trainers House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alandsbanken Abp position performs unexpectedly, Trainers House 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 Trainers House will offset losses from the drop in Trainers House's long position.| Alandsbanken Abp vs. Nordea Bank Abp | Alandsbanken Abp vs. Fortum Oyj | Alandsbanken Abp vs. UPM Kymmene Oyj | Alandsbanken Abp vs. Neste Oil Oyj |
| Trainers House vs. Nightingale Health Oyj | Trainers House vs. Aiforia Technologies Oyj | Trainers House vs. Alma Media Oyj | Trainers House vs. SSH Communications Security |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |