Correlation Between Alimak Hek and KABE Group
Can any of the company-specific risk be diversified away by investing in both Alimak Hek and KABE Group 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 KABE Group 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 KABE Group AB, you can compare the effects of market volatilities on Alimak Hek and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimak Hek and KABE Group.
Diversification Opportunities for Alimak Hek and KABE Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alimak and KABE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alimak Hek Group and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Alimak Hek i.e., Alimak Hek and KABE Group go up and down completely randomly.
Pair Corralation between Alimak Hek and KABE Group
Assuming the 90 days trading horizon Alimak Hek Group is expected to generate 0.99 times more return on investment than KABE Group. However, Alimak Hek Group is 1.01 times less risky than KABE Group. It trades about 0.09 of its potential returns per unit of risk. KABE Group AB is currently generating about 0.06 per unit of risk. If you would invest 5,432 in Alimak Hek Group on August 29, 2024 and sell it today you would earn a total of 6,408 from holding Alimak Hek Group or generate 117.97% 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. KABE Group AB
Performance |
| Timeline |
| Alimak Hek Group |
| KABE Group AB |
Alimak Hek and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimak Hek and KABE Group
The main advantage of trading using opposite Alimak Hek and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimak Hek position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group'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 |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |