Correlation Between ALM Equity and Stendrren Fastigheter
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By analyzing existing cross correlation between ALM Equity AB and Stendrren Fastigheter AB, you can compare the effects of market volatilities on ALM Equity and Stendrren Fastigheter 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 Stendrren Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Stendrren Fastigheter.
Diversification Opportunities for ALM Equity and Stendrren Fastigheter
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALM and Stendrren is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Stendrren Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stendrren Fastigheter 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 Stendrren Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stendrren Fastigheter has no effect on the direction of ALM Equity i.e., ALM Equity and Stendrren Fastigheter go up and down completely randomly.
Pair Corralation between ALM Equity and Stendrren Fastigheter
Assuming the 90 days trading horizon ALM Equity is expected to generate 1.84 times less return on investment than Stendrren Fastigheter. But when comparing it to its historical volatility, ALM Equity AB is 1.68 times less risky than Stendrren Fastigheter. It trades about 0.05 of its potential returns per unit of risk. Stendrren Fastigheter AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 15,280 in Stendrren Fastigheter AB on September 12, 2024 and sell it today you would earn a total of 5,370 from holding Stendrren Fastigheter AB or generate 35.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. Stendrren Fastigheter AB
Performance |
| Timeline |
| ALM Equity AB |
| Stendrren Fastigheter |
ALM Equity and Stendrren Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Stendrren Fastigheter
The main advantage of trading using opposite ALM Equity and Stendrren Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Stendrren Fastigheter 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 Stendrren Fastigheter will offset losses from the drop in Stendrren Fastigheter's long position.| ALM Equity vs. Upsales Technology AB | ALM Equity vs. Catena Media plc | ALM Equity vs. Systemair AB | ALM Equity vs. Scandinavian ChemoTech AB |
| Stendrren Fastigheter vs. Corem Property Group | Stendrren Fastigheter vs. ALM Equity AB | Stendrren Fastigheter vs. Fastighets AB Balder | Stendrren Fastigheter 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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