Correlation Between ALM Equity and ALM Equity
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By analyzing existing cross correlation between ALM Equity AB and ALM Equity AB, you can compare the effects of market volatilities on ALM Equity and ALM Equity 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 ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and ALM Equity.
Diversification Opportunities for ALM Equity and ALM Equity
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ALM and ALM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity 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 ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of ALM Equity i.e., ALM Equity and ALM Equity go up and down completely randomly.
Pair Corralation between ALM Equity and ALM Equity
Assuming the 90 days trading horizon ALM Equity AB is expected to generate 0.41 times more return on investment than ALM Equity. However, ALM Equity AB is 2.44 times less risky than ALM Equity. It trades about -0.12 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.39 per unit of risk. If you would invest 8,990 in ALM Equity AB on September 2, 2024 and sell it today you would lose (170.00) from holding ALM Equity AB or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. ALM Equity AB
Performance |
| Timeline |
| ALM Equity AB |
| ALM Equity AB |
ALM Equity and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and ALM Equity
The main advantage of trading using opposite ALM Equity and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, ALM Equity 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 ALM Equity will offset losses from the drop in ALM Equity's long position.| ALM Equity vs. Vitec Software Group | ALM Equity vs. Lundin Mining | ALM Equity vs. Neola Medical AB | ALM Equity vs. Scandic Hotels Group |
| ALM Equity vs. FastPartner AB | ALM Equity vs. Svolder AB | ALM Equity vs. Fastighets AB Balder | ALM Equity vs. Cibus Nordic Real |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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