Correlation Between Alimak Hek and EEducation Albert
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and EEducation Albert 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 EEducation Albert 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 eEducation Albert AB, you can compare the effects of market volatilities on Alimak Hek and EEducation Albert 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 EEducation Albert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and EEducation Albert.
Diversification Opportunities for Alimak Hek and EEducation Albert
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alimak and EEducation is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and eEducation Albert AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eEducation Albert 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 EEducation Albert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eEducation Albert has no effect on the direction of Alimak Hek i.e., Alimak Hek and EEducation Albert go up and down completely randomly.
Pair Corralation between Alimak Hek and EEducation Albert
Assuming the 90 days trading horizon Alimak Hek Group is expected to generate 0.72 times more return on investment than EEducation Albert. However, Alimak Hek Group is 1.39 times less risky than EEducation Albert. It trades about -0.07 of its potential returns per unit of risk. eEducation Albert AB is currently generating about -0.09 per unit of risk. If you would invest 12,220 in Alimak Hek Group on September 1, 2024 and sell it today you would lose (280.00) from holding Alimak Hek Group or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alimak Hek Group vs. eEducation Albert AB
Performance |
| Timeline |
| Alimak Hek Group |
| eEducation Albert |
Alimak Hek and EEducation Albert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and EEducation Albert
The main advantage of trading using opposite Alimak Hek and EEducation Albert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, EEducation Albert 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 EEducation Albert will offset losses from the drop in EEducation Albert's long position.| Alimak Hek vs. Samhllsbyggnadsbolaget i Norden | Alimak Hek vs. Sinch AB | Alimak Hek vs. Embracer Group AB | Alimak Hek vs. Evolution AB |
| EEducation Albert vs. Greater Than AB | EEducation Albert vs. Cint Group AB | EEducation Albert vs. Acconeer AB | EEducation Albert vs. IAR Systems Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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