Correlation Between AddLife AB and Alligo AB
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By analyzing existing cross correlation between AddLife AB and Alligo AB Series, you can compare the effects of market volatilities on AddLife AB and Alligo AB 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 AddLife AB with a short position of Alligo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddLife AB and Alligo AB.
Diversification Opportunities for AddLife AB and Alligo AB
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AddLife and Alligo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AddLife AB and Alligo AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligo AB Series and AddLife AB 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 AddLife AB are associated (or correlated) with Alligo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligo AB Series has no effect on the direction of AddLife AB i.e., AddLife AB and Alligo AB go up and down completely randomly.
Pair Corralation between AddLife AB and Alligo AB
Assuming the 90 days trading horizon AddLife AB is expected to under-perform the Alligo AB. But the stock apears to be less risky and, when comparing its historical volatility, AddLife AB is 1.9 times less risky than Alligo AB. The stock trades about -0.16 of its potential returns per unit of risk. The Alligo AB Series is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 12,240 in Alligo AB Series on August 29, 2024 and sell it today you would lose (680.00) from holding Alligo AB Series or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AddLife AB vs. Alligo AB Series
Performance |
| Timeline |
| AddLife AB |
| Alligo AB Series |
AddLife AB and Alligo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AddLife AB and Alligo AB
The main advantage of trading using opposite AddLife AB and Alligo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AddLife AB position performs unexpectedly, Alligo AB 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 Alligo AB will offset losses from the drop in Alligo AB's long position.| AddLife AB vs. Mantex AB | AddLife AB vs. Genovis AB | AddLife AB vs. Vestum AB | AddLife AB vs. Karolinska Development AB |
| Alligo AB vs. Indutrade AB | Alligo AB vs. Lifco AB | Alligo AB vs. Lagercrantz Group AB | Alligo AB vs. AddLife 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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