Correlation Between Atrium Ljungberg and ALM Equity
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By analyzing existing cross correlation between Atrium Ljungberg AB and ALM Equity AB, you can compare the effects of market volatilities on Atrium Ljungberg and ALM Equity 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 Atrium Ljungberg with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and ALM Equity.
Diversification Opportunities for Atrium Ljungberg and ALM Equity
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atrium and ALM is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity AB and Atrium Ljungberg 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 Atrium Ljungberg AB are associated (or correlated) with ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of Atrium Ljungberg i.e., Atrium Ljungberg and ALM Equity go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and ALM Equity
Assuming the 90 days trading horizon Atrium Ljungberg AB is expected to generate 0.68 times more return on investment than ALM Equity. However, Atrium Ljungberg AB is 1.48 times less risky than ALM Equity. It trades about 0.02 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.08 per unit of risk. 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 |
Atrium Ljungberg AB vs. ALM Equity AB
Performance |
| Timeline |
| Atrium Ljungberg |
| ALM Equity AB |
Atrium Ljungberg and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Ljungberg and ALM Equity
The main advantage of trading using opposite Atrium Ljungberg and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg position performs unexpectedly, ALM Equity 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 ALM Equity will offset losses from the drop in ALM Equity's long position.| Atrium Ljungberg vs. FastPartner AB | Atrium Ljungberg vs. Svolder AB | Atrium Ljungberg vs. Fastighets AB Balder | Atrium Ljungberg vs. Cibus Nordic Real |
| ALM Equity vs. ALM Equity AB | ALM Equity vs. Bufab Holding AB | ALM Equity vs. Atrium Ljungberg AB | ALM Equity vs. Bravida Holding 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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