Correlation Between Alligo AB and Atrium Ljungberg
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By analyzing existing cross correlation between Alligo AB Series and Atrium Ljungberg AB, you can compare the effects of market volatilities on Alligo AB and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligo AB and Atrium Ljungberg.
Diversification Opportunities for Alligo AB and Atrium Ljungberg
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alligo and Atrium is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alligo AB Series and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of Alligo AB i.e., Alligo AB and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between Alligo AB and Atrium Ljungberg
Assuming the 90 days trading horizon Alligo AB is expected to generate 1.59 times less return on investment than Atrium Ljungberg. In addition to that, Alligo AB is 1.16 times more volatile than Atrium Ljungberg AB. It trades about 0.01 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.02 per unit of volatility. If you would invest 18,743 in Atrium Ljungberg AB on August 31, 2024 and sell it today you would earn a total of 1,407 from holding Atrium Ljungberg AB or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alligo AB Series vs. Atrium Ljungberg AB
Performance |
| Timeline |
| Alligo AB Series |
| Atrium Ljungberg |
Alligo AB and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligo AB and Atrium Ljungberg
The main advantage of trading using opposite Alligo AB and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligo AB position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| Alligo AB vs. Indutrade AB | Alligo AB vs. Lifco AB | Alligo AB vs. Lagercrantz Group AB | Alligo AB vs. AddLife AB |
| Atrium Ljungberg vs. FastPartner AB | Atrium Ljungberg vs. Svolder AB | Atrium Ljungberg vs. Fastighets AB Balder | Atrium Ljungberg vs. Cibus Nordic Real |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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