Correlation Between Alligo AB and Vestum AB
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By analyzing existing cross correlation between Alligo AB Series and Vestum AB, you can compare the effects of market volatilities on Alligo AB and Vestum AB 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 Vestum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligo AB and Vestum AB.
Diversification Opportunities for Alligo AB and Vestum AB
Excellent diversification
The 3 months correlation between Alligo and Vestum is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Alligo AB Series and Vestum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestum 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 Vestum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestum AB has no effect on the direction of Alligo AB i.e., Alligo AB and Vestum AB go up and down completely randomly.
Pair Corralation between Alligo AB and Vestum AB
Assuming the 90 days trading horizon Alligo AB Series is expected to under-perform the Vestum AB. But the stock apears to be less risky and, when comparing its historical volatility, Alligo AB Series is 1.24 times less risky than Vestum AB. The stock trades about -0.06 of its potential returns per unit of risk. The Vestum AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Vestum AB on August 29, 2024 and sell it today you would earn a total of 88.00 from holding Vestum AB or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alligo AB Series vs. Vestum AB
Performance |
| Timeline |
| Alligo AB Series |
| Vestum AB |
Alligo AB and Vestum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligo AB and Vestum AB
The main advantage of trading using opposite Alligo AB and Vestum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligo AB position performs unexpectedly, Vestum AB 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 Vestum AB will offset losses from the drop in Vestum AB's long position.| Alligo AB vs. Indutrade AB | Alligo AB vs. Lifco AB | Alligo AB vs. Lagercrantz Group AB | Alligo AB vs. AddLife AB |
| Vestum AB vs. Sweco AB | Vestum AB vs. AAK AB | Vestum AB vs. Beijer Ref AB | Vestum AB vs. Bravida Holding 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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