Correlation Between ALM Equity and HEBA Fastighets
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By analyzing existing cross correlation between ALM Equity AB and HEBA Fastighets AB, you can compare the effects of market volatilities on ALM Equity and HEBA Fastighets 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 HEBA Fastighets. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and HEBA Fastighets.
Diversification Opportunities for ALM Equity and HEBA Fastighets
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALM and HEBA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and HEBA Fastighets AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEBA Fastighets 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 HEBA Fastighets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEBA Fastighets AB has no effect on the direction of ALM Equity i.e., ALM Equity and HEBA Fastighets go up and down completely randomly.
Pair Corralation between ALM Equity and HEBA Fastighets
Assuming the 90 days trading horizon ALM Equity AB is expected to generate 0.37 times more return on investment than HEBA Fastighets. However, ALM Equity AB is 2.72 times less risky than HEBA Fastighets. It trades about -0.16 of its potential returns per unit of risk. HEBA Fastighets AB is currently generating about -0.07 per unit of risk. If you would invest 9,089 in ALM Equity AB on September 12, 2024 and sell it today you would lose (519.00) from holding ALM Equity AB or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. HEBA Fastighets AB
Performance |
| Timeline |
| ALM Equity AB |
| HEBA Fastighets AB |
ALM Equity and HEBA Fastighets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and HEBA Fastighets
The main advantage of trading using opposite ALM Equity and HEBA Fastighets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, HEBA Fastighets 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 HEBA Fastighets will offset losses from the drop in HEBA Fastighets' long position.| ALM Equity vs. Havsfrun Investment AB | ALM Equity vs. Maven Wireless Sweden | ALM Equity vs. Arion banki hf | ALM Equity vs. Nordic Asia Investment |
| HEBA Fastighets vs. Corem Property Group | HEBA Fastighets vs. ALM Equity AB | HEBA Fastighets vs. Fastighets AB Balder | HEBA Fastighets vs. KABE 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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