Correlation Between ALM Equity and Atrium Ljungberg
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By analyzing existing cross correlation between ALM Equity AB and Atrium Ljungberg AB, you can compare the effects of market volatilities on ALM Equity and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Equity and Atrium Ljungberg.
Diversification Opportunities for ALM Equity and Atrium Ljungberg
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALM and Atrium is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ALM Equity AB and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of ALM Equity i.e., ALM Equity and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between ALM Equity and Atrium Ljungberg
Assuming the 90 days trading horizon ALM Equity AB is expected to under-perform the Atrium Ljungberg. In addition to that, ALM Equity is 1.48 times more volatile than Atrium Ljungberg AB. It trades about -0.08 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.02 per unit of volatility. If you would invest 18,743 in Atrium Ljungberg AB on August 31, 2024 and sell it today you would earn a total of 1,407 from holding Atrium Ljungberg AB or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALM Equity AB vs. Atrium Ljungberg AB
Performance |
| Timeline |
| ALM Equity AB |
| Atrium Ljungberg |
ALM Equity and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALM Equity and Atrium Ljungberg
The main advantage of trading using opposite ALM Equity and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Equity position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| ALM Equity vs. ALM Equity AB | ALM Equity vs. Bufab Holding AB | ALM Equity vs. Atrium Ljungberg AB | ALM Equity vs. Bravida Holding AB |
| Atrium Ljungberg vs. FastPartner AB | Atrium Ljungberg vs. Svolder AB | Atrium Ljungberg vs. Fastighets AB Balder | Atrium Ljungberg vs. Cibus Nordic Real |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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