Correlation Between AddLife AB and Beijer Alma
Can any of the company-specific risk be diversified away by investing in both AddLife AB and Beijer Alma 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 AddLife AB and Beijer Alma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AddLife AB and Beijer Alma AB, you can compare the effects of market volatilities on AddLife AB and Beijer Alma 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 Beijer Alma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AddLife AB and Beijer Alma.
Diversification Opportunities for AddLife AB and Beijer Alma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AddLife and Beijer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AddLife AB and Beijer Alma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Alma AB 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 Beijer Alma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Alma AB has no effect on the direction of AddLife AB i.e., AddLife AB and Beijer Alma go up and down completely randomly.
Pair Corralation between AddLife AB and Beijer Alma
If you would invest (100.00) in AddLife AB on August 31, 2024 and sell it today you would earn a total of 100.00 from holding AddLife AB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AddLife AB vs. Beijer Alma AB
Performance |
| Timeline |
| AddLife AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beijer Alma AB |
AddLife AB and Beijer Alma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AddLife AB and Beijer Alma
The main advantage of trading using opposite AddLife AB and Beijer Alma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AddLife AB position performs unexpectedly, Beijer Alma 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 Beijer Alma will offset losses from the drop in Beijer Alma's long position.| AddLife AB vs. Addtech AB | AddLife AB vs. Lifco AB | AddLife AB vs. Indutrade AB | AddLife AB vs. Lagercrantz Group AB |
| Beijer Alma vs. Beijer Ref AB | Beijer Alma vs. Indutrade AB | Beijer Alma vs. Addtech AB | Beijer Alma vs. Nolato 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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