Correlation Between ALM Equity and Akelius Residential
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By analyzing existing cross correlation between ALM Equity AB and Akelius Residential Property, you can compare the effects of market volatilities on ALM Equity and Akelius Residential 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 Akelius Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Akelius Residential.
Diversification Opportunities for ALM Equity and Akelius Residential
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALM and Akelius is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Akelius Residential Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akelius Residential 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 Akelius Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akelius Residential has no effect on the direction of ALM Equity i.e., ALM Equity and Akelius Residential go up and down completely randomly.
Pair Corralation between ALM Equity and Akelius Residential
Assuming the 90 days trading horizon ALM Equity AB is expected to under-perform the Akelius Residential. But the stock apears to be less risky and, when comparing its historical volatility, ALM Equity AB is 1.07 times less risky than Akelius Residential. The stock trades about -0.16 of its potential returns per unit of risk. The Akelius Residential Property is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Akelius Residential Property on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Akelius Residential Property or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ALM Equity AB vs. Akelius Residential Property
Performance |
| Timeline |
| ALM Equity AB |
| Akelius Residential |
ALM Equity and Akelius Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Akelius Residential
The main advantage of trading using opposite ALM Equity and Akelius Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Akelius Residential 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 Akelius Residential will offset losses from the drop in Akelius Residential's long position.| ALM Equity vs. Neola Medical AB | ALM Equity vs. Upsales Technology AB | ALM Equity vs. Kinnevik Investment AB | ALM Equity vs. MTI Investment SE |
| Akelius Residential vs. Cibus Nordic Real | Akelius Residential vs. Samhaellsbyggnadsbolaget i Norden | Akelius Residential vs. AB Sagax | Akelius Residential vs. ALM Equity 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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