Correlation Between ALM Equity and Dustin Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between ALM Equity AB and Dustin Group AB, you can compare the effects of market volatilities on ALM Equity and Dustin Group 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 Dustin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Dustin Group.
Diversification Opportunities for ALM Equity and Dustin Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ALM and Dustin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Dustin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dustin Group 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 Dustin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dustin Group AB has no effect on the direction of ALM Equity i.e., ALM Equity and Dustin Group go up and down completely randomly.
Pair Corralation between ALM Equity and Dustin Group
Assuming the 90 days trading horizon ALM Equity AB is expected to generate 0.18 times more return on investment than Dustin Group. However, ALM Equity AB is 5.57 times less risky than Dustin Group. It trades about -0.13 of its potential returns per unit of risk. Dustin Group AB is currently generating about -0.03 per unit of risk. If you would invest 8,450 in ALM Equity AB on November 5, 2024 and sell it today you would lose (150.00) from holding ALM Equity AB or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
ALM Equity AB vs. Dustin Group AB
Performance |
| Timeline |
| ALM Equity AB |
| Dustin Group AB |
ALM Equity and Dustin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Dustin Group
The main advantage of trading using opposite ALM Equity and Dustin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Dustin Group 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 Dustin Group will offset losses from the drop in Dustin Group's long position.| ALM Equity vs. Lundin Mining | ALM Equity vs. FormPipe Software AB | ALM Equity vs. Invisio Communications AB | ALM Equity vs. Vitec Software Group |
| Dustin Group vs. Clas Ohlson AB | Dustin Group vs. Byggmax Group AB | Dustin Group vs. Inwido AB | Dustin Group vs. Dometic Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |