Correlation Between Alligo AB and Ferronordic
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By analyzing existing cross correlation between Alligo AB Series and Ferronordic AB, you can compare the effects of market volatilities on Alligo AB 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 Alligo AB with a short position of Ferronordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligo AB and Ferronordic.
Diversification Opportunities for Alligo AB and Ferronordic
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alligo and Ferronordic is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alligo AB Series and Ferronordic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferronordic 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 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 Alligo AB i.e., Alligo AB and Ferronordic go up and down completely randomly.
Pair Corralation between Alligo AB and Ferronordic
Assuming the 90 days trading horizon Alligo AB Series is expected to generate 1.43 times more return on investment than Ferronordic. However, Alligo AB is 1.43 times more volatile than Ferronordic AB. It trades about 0.15 of its potential returns per unit of risk. Ferronordic AB is currently generating about -0.09 per unit of risk. If you would invest 11,800 in Alligo AB Series on September 25, 2024 and sell it today you would earn a total of 780.00 from holding Alligo AB Series or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alligo AB Series vs. Ferronordic AB
Performance |
| Timeline |
| Alligo AB Series |
| Ferronordic AB |
Alligo AB and Ferronordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligo AB and Ferronordic
The main advantage of trading using opposite Alligo AB and Ferronordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligo AB 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.| Alligo AB vs. Indutrade AB | Alligo AB vs. Bufab Holding AB | Alligo AB vs. Teqnion AB | Alligo AB vs. Ferronordic AB |
| Ferronordic vs. Indutrade AB | Ferronordic vs. Bufab Holding AB | Ferronordic vs. Alligo AB Series | Ferronordic vs. Teqnion 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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