Correlation Between Alcadon Group and Dustin Group
Can any of the company-specific risk be diversified away by investing in both Alcadon Group and Dustin Group 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 Alcadon Group and Dustin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcadon Group AB and Dustin Group AB, you can compare the effects of market volatilities on Alcadon Group and Dustin Group 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 Alcadon Group with a short position of Dustin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcadon Group and Dustin Group.
Diversification Opportunities for Alcadon Group and Dustin Group
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alcadon and Dustin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Alcadon Group AB and Dustin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dustin Group AB and Alcadon Group 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 Alcadon Group AB are associated (or correlated) with Dustin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dustin Group AB has no effect on the direction of Alcadon Group i.e., Alcadon Group and Dustin Group go up and down completely randomly.
Pair Corralation between Alcadon Group and Dustin Group
Assuming the 90 days trading horizon Alcadon Group AB is expected to generate 0.43 times more return on investment than Dustin Group. However, Alcadon Group AB is 2.31 times less risky than Dustin Group. It trades about -0.2 of its potential returns per unit of risk. Dustin Group AB is currently generating about -0.37 per unit of risk. If you would invest 3,080 in Alcadon Group AB on August 29, 2024 and sell it today you would lose (300.00) from holding Alcadon Group AB or give up 9.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcadon Group AB vs. Dustin Group AB
Performance |
| Timeline |
| Alcadon Group AB |
| Dustin Group AB |
Alcadon Group and Dustin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcadon Group and Dustin Group
The main advantage of trading using opposite Alcadon Group and Dustin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcadon Group position performs unexpectedly, Dustin Group 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 Dustin Group will offset losses from the drop in Dustin Group's long position.| Alcadon Group vs. New Wave Group | Alcadon Group vs. Cantargia AB | Alcadon Group vs. Enea AB | Alcadon Group vs. Proact IT Group |
| Dustin Group vs. New Wave Group | Dustin Group vs. Clas Ohlson AB | Dustin Group vs. BE Group AB | Dustin Group vs. Betsson 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |