Correlation Between Alimak Hek and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and Attendo AB 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 Attendo AB 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 Attendo AB, you can compare the effects of market volatilities on Alimak Hek and Attendo 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 Alimak Hek with a short position of Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and Attendo AB.
Diversification Opportunities for Alimak Hek and Attendo AB
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alimak and Attendo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo 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 Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Alimak Hek i.e., Alimak Hek and Attendo AB go up and down completely randomly.
Pair Corralation between Alimak Hek and Attendo AB
Assuming the 90 days trading horizon Alimak Hek is expected to generate 1.19 times less return on investment than Attendo AB. But when comparing it to its historical volatility, Alimak Hek Group is 1.03 times less risky than Attendo AB. It trades about 0.08 of its potential returns per unit of risk. Attendo AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,368 in Attendo AB on September 1, 2024 and sell it today you would earn a total of 2,492 from holding Attendo AB or generate 105.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimak Hek Group vs. Attendo AB
Performance |
| Timeline |
| Alimak Hek Group |
| Attendo AB |
Alimak Hek and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and Attendo AB
The main advantage of trading using opposite Alimak Hek and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, Attendo 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 Attendo AB will offset losses from the drop in Attendo AB'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 |
| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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