Correlation Between Alligo AB and Absolent Group
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By analyzing existing cross correlation between Alligo AB Series and Absolent Group AB, you can compare the effects of market volatilities on Alligo AB and Absolent 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 Alligo AB with a short position of Absolent Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligo AB and Absolent Group.
Diversification Opportunities for Alligo AB and Absolent Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alligo and Absolent is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alligo AB Series and Absolent Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolent Group AB and Alligo AB 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 Alligo AB Series are associated (or correlated) with Absolent Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolent Group AB has no effect on the direction of Alligo AB i.e., Alligo AB and Absolent Group go up and down completely randomly.
Pair Corralation between Alligo AB and Absolent Group
Assuming the 90 days trading horizon Alligo AB Series is expected to generate 0.78 times more return on investment than Absolent Group. However, Alligo AB Series is 1.28 times less risky than Absolent Group. It trades about 0.05 of its potential returns per unit of risk. Absolent Group AB is currently generating about 0.03 per unit of risk. If you would invest 13,600 in Alligo AB Series on December 9, 2024 and sell it today you would earn a total of 300.00 from holding Alligo AB Series or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alligo AB Series vs. Absolent Group AB
Performance |
| Timeline |
| Alligo AB Series |
| Absolent Group AB |
Alligo AB and Absolent Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligo AB and Absolent Group
The main advantage of trading using opposite Alligo AB and Absolent Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligo AB position performs unexpectedly, Absolent 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 Absolent Group will offset losses from the drop in Absolent Group's long position.| Alligo AB vs. AddLife AB | ||
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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