Correlation Between Alefarm Brewing and PF Atlantic
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By analyzing existing cross correlation between Alefarm Brewing AS and PF Atlantic Petroleum, you can compare the effects of market volatilities on Alefarm Brewing and PF Atlantic 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 PF Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and PF Atlantic.
Diversification Opportunities for Alefarm Brewing and PF Atlantic
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alefarm and ATLA-DKK is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and PF Atlantic go up and down completely randomly.
Pair Corralation between Alefarm Brewing and PF Atlantic
Assuming the 90 days trading horizon Alefarm Brewing AS is expected to generate 1.26 times more return on investment than PF Atlantic. However, Alefarm Brewing is 1.26 times more volatile than PF Atlantic Petroleum. It trades about 0.01 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about -0.04 per unit of risk. If you would invest 244.00 in Alefarm Brewing AS on August 27, 2024 and sell it today you would lose (75.00) from holding Alefarm Brewing AS or give up 30.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alefarm Brewing AS vs. PF Atlantic Petroleum
Performance |
| Timeline |
| Alefarm Brewing AS |
| PF Atlantic Petroleum |
Alefarm Brewing and PF Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alefarm Brewing and PF Atlantic
The main advantage of trading using opposite Alefarm Brewing and PF Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alefarm Brewing position performs unexpectedly, PF Atlantic 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 PF Atlantic will offset losses from the drop in PF Atlantic's long position.| Alefarm Brewing vs. Sparinvest INDEX Globale | Alefarm Brewing vs. Bavarian Nordic | Alefarm Brewing vs. Investeringsselskabet Luxor AS | Alefarm Brewing vs. cBrain AS |
| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. Orphazyme AS | PF Atlantic vs. TORM plc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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