Correlation Between ALM Equity and Clinical Laserthermia
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By analyzing existing cross correlation between ALM Equity AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on ALM Equity and Clinical Laserthermia 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 Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Clinical Laserthermia.
Diversification Opportunities for ALM Equity and Clinical Laserthermia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ALM and Clinical is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia 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 Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of ALM Equity i.e., ALM Equity and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between ALM Equity and Clinical Laserthermia
Assuming the 90 days trading horizon ALM Equity AB is expected to generate 0.1 times more return on investment than Clinical Laserthermia. However, ALM Equity AB is 9.58 times less risky than Clinical Laserthermia. It trades about -0.16 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.2 per unit of risk. If you would invest 9,040 in ALM Equity AB on September 1, 2024 and sell it today you would lose (220.00) from holding ALM Equity AB or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ALM Equity AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| ALM Equity AB |
| Clinical Laserthermia |
ALM Equity and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Clinical Laserthermia
The main advantage of trading using opposite ALM Equity and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia'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 |
| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. BICO Group AB | Clinical Laserthermia vs. Bactiguard Holding AB | Clinical Laserthermia vs. Stille 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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