Correlation Between ALM Equity and Abliva AB
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By analyzing existing cross correlation between ALM Equity AB and Abliva AB, you can compare the effects of market volatilities on ALM Equity and Abliva 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 ALM Equity with a short position of Abliva AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Abliva AB.
Diversification Opportunities for ALM Equity and Abliva AB
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ALM and Abliva is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Abliva AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abliva AB and ALM Equity 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 ALM Equity AB are associated (or correlated) with Abliva AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abliva AB has no effect on the direction of ALM Equity i.e., ALM Equity and Abliva AB go up and down completely randomly.
Pair Corralation between ALM Equity and Abliva AB
Assuming the 90 days trading horizon ALM Equity is expected to generate 10.61 times less return on investment than Abliva AB. But when comparing it to its historical volatility, ALM Equity AB is 8.99 times less risky than Abliva AB. It trades about 0.03 of its potential returns per unit of risk. Abliva AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Abliva AB on October 31, 2024 and sell it today you would earn a total of 14.00 from holding Abliva AB or generate 46.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
ALM Equity AB vs. Abliva AB
Performance |
Timeline |
ALM Equity AB |
Abliva AB |
ALM Equity and Abliva AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALM Equity and Abliva AB
The main advantage of trading using opposite ALM Equity and Abliva AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Abliva 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 Abliva AB will offset losses from the drop in Abliva AB's long position.ALM Equity vs. USWE Sports AB | ALM Equity vs. JLT Mobile Computers | ALM Equity vs. Vitec Software Group | ALM Equity vs. FormPipe Software 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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