Correlation Between ALM Equity and Byggmstare Anders
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By analyzing existing cross correlation between ALM Equity AB and Byggmstare Anders J, you can compare the effects of market volatilities on ALM Equity and Byggmstare Anders 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 Byggmstare Anders. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Byggmstare Anders.
Diversification Opportunities for ALM Equity and Byggmstare Anders
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALM and Byggmstare is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Byggmstare Anders J in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmstare Anders 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 Byggmstare Anders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmstare Anders has no effect on the direction of ALM Equity i.e., ALM Equity and Byggmstare Anders go up and down completely randomly.
Pair Corralation between ALM Equity and Byggmstare Anders
Assuming the 90 days trading horizon ALM Equity AB is expected to generate 0.81 times more return on investment than Byggmstare Anders. However, ALM Equity AB is 1.23 times less risky than Byggmstare Anders. It trades about 0.11 of its potential returns per unit of risk. Byggmstare Anders J is currently generating about 0.01 per unit of risk. If you would invest 8,014 in ALM Equity AB on September 4, 2024 and sell it today you would earn a total of 756.00 from holding ALM Equity AB or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. Byggmstare Anders J
Performance |
| Timeline |
| ALM Equity AB |
| Byggmstare Anders |
ALM Equity and Byggmstare Anders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Byggmstare Anders
The main advantage of trading using opposite ALM Equity and Byggmstare Anders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Byggmstare Anders 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 Byggmstare Anders will offset losses from the drop in Byggmstare Anders' long position.| ALM Equity vs. Lundin Mining | ALM Equity vs. AcadeMedia AB | ALM Equity vs. Redsense Medical AB | ALM Equity vs. 24SevenOffice Scandinavia AB |
| Byggmstare Anders vs. Creades AB | Byggmstare Anders vs. ALM Equity AB | Byggmstare Anders vs. Brinova Fastigheter AB | Byggmstare Anders vs. Awardit 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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