Correlation Between ALM Equity and Neola Medical
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By analyzing existing cross correlation between ALM Equity AB and Neola Medical AB, you can compare the effects of market volatilities on ALM Equity and Neola Medical 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 Neola Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Neola Medical.
Diversification Opportunities for ALM Equity and Neola Medical
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ALM and Neola is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Neola Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neola Medical 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 Neola Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neola Medical AB has no effect on the direction of ALM Equity i.e., ALM Equity and Neola Medical go up and down completely randomly.
Pair Corralation between ALM Equity and Neola Medical
Assuming the 90 days trading horizon ALM Equity is expected to generate 3.77 times less return on investment than Neola Medical. But when comparing it to its historical volatility, ALM Equity AB is 4.27 times less risky than Neola Medical. It trades about 0.05 of its potential returns per unit of risk. Neola Medical AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Neola Medical AB on September 1, 2024 and sell it today you would earn a total of 90.00 from holding Neola Medical AB or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. Neola Medical AB
Performance |
| Timeline |
| ALM Equity AB |
| Neola Medical AB |
ALM Equity and Neola Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Neola Medical
The main advantage of trading using opposite ALM Equity and Neola Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Neola Medical 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 Neola Medical will offset losses from the drop in Neola Medical'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 |
| Neola Medical vs. Xvivo Perfusion AB | Neola Medical vs. BICO Group AB | Neola Medical vs. Bactiguard Holding AB | Neola Medical 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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