Correlation Between Alimak Hek and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and AcadeMedia 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 Alimak Hek and AcadeMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimak Hek Group and AcadeMedia AB, you can compare the effects of market volatilities on Alimak Hek and AcadeMedia 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 Alimak Hek with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and AcadeMedia.
Diversification Opportunities for Alimak Hek and AcadeMedia
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alimak and AcadeMedia is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Alimak Hek 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 Alimak Hek Group are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Alimak Hek i.e., Alimak Hek and AcadeMedia go up and down completely randomly.
Pair Corralation between Alimak Hek and AcadeMedia
Assuming the 90 days trading horizon Alimak Hek Group is expected to under-perform the AcadeMedia. But the stock apears to be less risky and, when comparing its historical volatility, Alimak Hek Group is 1.03 times less risky than AcadeMedia. The stock trades about -0.05 of its potential returns per unit of risk. The AcadeMedia AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,100 in AcadeMedia AB on November 3, 2024 and sell it today you would earn a total of 740.00 from holding AcadeMedia AB or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimak Hek Group vs. AcadeMedia AB
Performance |
| Timeline |
| Alimak Hek Group |
| AcadeMedia AB |
Alimak Hek and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and AcadeMedia
The main advantage of trading using opposite Alimak Hek and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| Alimak Hek vs. Inwido AB | Alimak Hek vs. Bufab Holding AB | Alimak Hek vs. Cloetta AB | Alimak Hek vs. Dometic Group AB |
| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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