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
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alefarm and ATLA-DKK is 0.38. 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 is expected to generate 7.8 times less return on investment than PF Atlantic. But when comparing it to its historical volatility, Alefarm Brewing AS is 2.56 times less risky than PF Atlantic. It trades about 0.08 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 155.00 in PF Atlantic Petroleum on November 4, 2024 and sell it today you would earn a total of 82.00 from holding PF Atlantic Petroleum or generate 52.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| 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. Nordea Bank Abp | Alefarm Brewing vs. Strategic Investments AS | Alefarm Brewing vs. Kreditbanken AS | Alefarm Brewing vs. Skjern Bank AS |
| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. TORM plc | PF Atlantic vs. Zealand Pharma AS |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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