Correlation Between Alm Brand and LED IBond
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alm Brand and LED iBond International, you can compare the effects of market volatilities on Alm Brand and LED IBond 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 Brand with a short position of LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alm Brand and LED IBond.
Diversification Opportunities for Alm Brand and LED IBond
Excellent diversification
The 3 months correlation between Alm and LED is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alm Brand and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International and Alm Brand 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 Brand are associated (or correlated) with LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Alm Brand i.e., Alm Brand and LED IBond go up and down completely randomly.
Pair Corralation between Alm Brand and LED IBond
Assuming the 90 days trading horizon Alm Brand is expected to generate 0.18 times more return on investment than LED IBond. However, Alm Brand is 5.5 times less risky than LED IBond. It trades about 0.2 of its potential returns per unit of risk. LED iBond International is currently generating about -0.16 per unit of risk. If you would invest 1,503 in Alm Brand on November 27, 2024 and sell it today you would earn a total of 55.00 from holding Alm Brand or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alm Brand vs. LED iBond International
Performance |
| Timeline |
| Alm Brand |
| LED iBond International |
Alm Brand and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alm Brand and LED IBond
The main advantage of trading using opposite Alm Brand and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alm Brand position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.The idea behind Alm Brand and LED iBond International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| LED IBond vs. Scandinavian Medical Solutions | LED IBond vs. Prime Office AS | LED IBond vs. Nordinvestments AS | LED IBond vs. Djurslands Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |