Correlation Between Alefarm Brewing and Accunia Inv
Can any of the company-specific risk be diversified away by investing in both Alefarm Brewing and Accunia Inv 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 Alefarm Brewing and Accunia Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alefarm Brewing AS and Accunia Inv European, you can compare the effects of market volatilities on Alefarm Brewing and Accunia Inv 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 Alefarm Brewing with a short position of Accunia Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and Accunia Inv.
Diversification Opportunities for Alefarm Brewing and Accunia Inv
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alefarm and Accunia is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Accunia Inv European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accunia Inv European and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Accunia Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accunia Inv European has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Accunia Inv go up and down completely randomly.
Pair Corralation between Alefarm Brewing and Accunia Inv
Assuming the 90 days trading horizon Alefarm Brewing AS is expected to generate 13.81 times more return on investment than Accunia Inv. However, Alefarm Brewing is 13.81 times more volatile than Accunia Inv European. It trades about 0.03 of its potential returns per unit of risk. Accunia Inv European is currently generating about 0.04 per unit of risk. If you would invest 137.00 in Alefarm Brewing AS on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Alefarm Brewing AS or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Alefarm Brewing AS vs. Accunia Inv European
Performance |
| Timeline |
| Alefarm Brewing AS |
| Accunia Inv European |
Alefarm Brewing and Accunia Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alefarm Brewing and Accunia Inv
The main advantage of trading using opposite Alefarm Brewing and Accunia Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alefarm Brewing position performs unexpectedly, Accunia Inv 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 Accunia Inv will offset losses from the drop in Accunia Inv's long position.| Alefarm Brewing vs. Prime Office AS | Alefarm Brewing vs. Jyske Bank AS | Alefarm Brewing vs. Danske Andelskassers Bank | Alefarm Brewing vs. PARKEN Sport Entertainment |
| Accunia Inv vs. PARKEN Sport Entertainment | Accunia Inv vs. Alefarm Brewing AS | Accunia Inv vs. Formuepleje Mix Medium | Accunia Inv vs. BankIn Bredygt Klimaakt |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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