Correlation Between Alimak Hek and Ferronordic
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and Ferronordic 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 Ferronordic 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 Ferronordic AB, you can compare the effects of market volatilities on Alimak Hek and Ferronordic 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 Ferronordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and Ferronordic.
Diversification Opportunities for Alimak Hek and Ferronordic
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alimak and Ferronordic is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and Ferronordic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferronordic 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 Ferronordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferronordic AB has no effect on the direction of Alimak Hek i.e., Alimak Hek and Ferronordic go up and down completely randomly.
Pair Corralation between Alimak Hek and Ferronordic
Assuming the 90 days trading horizon Alimak Hek Group is expected to generate 0.57 times more return on investment than Ferronordic. However, Alimak Hek Group is 1.75 times less risky than Ferronordic. It trades about 0.09 of its potential returns per unit of risk. Ferronordic AB is currently generating about 0.02 per unit of risk. If you would invest 5,404 in Alimak Hek Group on September 3, 2024 and sell it today you would earn a total of 6,536 from holding Alimak Hek Group or generate 120.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimak Hek Group vs. Ferronordic AB
Performance |
| Timeline |
| Alimak Hek Group |
| Ferronordic AB |
Alimak Hek and Ferronordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and Ferronordic
The main advantage of trading using opposite Alimak Hek and Ferronordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, Ferronordic 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 Ferronordic will offset losses from the drop in Ferronordic'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 |
| Ferronordic vs. TradeDoubler AB | Ferronordic vs. 24SevenOffice Scandinavia AB | Ferronordic vs. Kinnevik Investment AB | Ferronordic vs. Lundin Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |