Correlation Between Autoliv and Klaria Pharma
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By analyzing existing cross correlation between Autoliv and Klaria Pharma Holding, you can compare the effects of market volatilities on Autoliv and Klaria Pharma 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 Autoliv with a short position of Klaria Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and Klaria Pharma.
Diversification Opportunities for Autoliv and Klaria Pharma
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autoliv and Klaria is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding and Autoliv 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 Autoliv are associated (or correlated) with Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of Autoliv i.e., Autoliv and Klaria Pharma go up and down completely randomly.
Pair Corralation between Autoliv and Klaria Pharma
Assuming the 90 days trading horizon Autoliv is expected to generate 0.17 times more return on investment than Klaria Pharma. However, Autoliv is 5.86 times less risky than Klaria Pharma. It trades about 0.15 of its potential returns per unit of risk. Klaria Pharma Holding is currently generating about 0.01 per unit of risk. If you would invest 103,040 in Autoliv on August 29, 2024 and sell it today you would earn a total of 5,660 from holding Autoliv or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autoliv vs. Klaria Pharma Holding
Performance |
| Timeline |
| Autoliv |
| Klaria Pharma Holding |
Autoliv and Klaria Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoliv and Klaria Pharma
The main advantage of trading using opposite Autoliv and Klaria Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoliv position performs unexpectedly, Klaria Pharma 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 Klaria Pharma will offset losses from the drop in Klaria Pharma's long position.The idea behind Autoliv and Klaria Pharma Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Klaria Pharma vs. Kancera AB | Klaria Pharma vs. Cyxone AB | Klaria Pharma vs. Lidds AB | Klaria Pharma vs. Cantargia 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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