Correlation Between ALM Equity and KlaraBo Sverige
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By analyzing existing cross correlation between ALM Equity AB and KlaraBo Sverige AB, you can compare the effects of market volatilities on ALM Equity and KlaraBo Sverige 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 KlaraBo Sverige. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and KlaraBo Sverige.
Diversification Opportunities for ALM Equity and KlaraBo Sverige
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALM and KlaraBo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and KlaraBo Sverige AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KlaraBo Sverige 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 KlaraBo Sverige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KlaraBo Sverige AB has no effect on the direction of ALM Equity i.e., ALM Equity and KlaraBo Sverige go up and down completely randomly.
Pair Corralation between ALM Equity and KlaraBo Sverige
Assuming the 90 days trading horizon ALM Equity is expected to generate 1.02 times less return on investment than KlaraBo Sverige. But when comparing it to its historical volatility, ALM Equity AB is 1.96 times less risky than KlaraBo Sverige. It trades about 0.12 of its potential returns per unit of risk. KlaraBo Sverige AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,380 in KlaraBo Sverige AB on September 4, 2024 and sell it today you would earn a total of 500.00 from holding KlaraBo Sverige AB or generate 36.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. KlaraBo Sverige AB
Performance |
| Timeline |
| ALM Equity AB |
| KlaraBo Sverige AB |
ALM Equity and KlaraBo Sverige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and KlaraBo Sverige
The main advantage of trading using opposite ALM Equity and KlaraBo Sverige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, KlaraBo Sverige 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 KlaraBo Sverige will offset losses from the drop in KlaraBo Sverige's long position.| ALM Equity vs. Lundin Mining | ALM Equity vs. AcadeMedia AB | ALM Equity vs. Redsense Medical AB | ALM Equity vs. 24SevenOffice Scandinavia AB |
| KlaraBo Sverige vs. Cibus Nordic Real | KlaraBo Sverige vs. ALM Equity AB | KlaraBo Sverige vs. Castellum 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.
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