Correlation Between Atrium Ljungberg and Svolder AB
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By analyzing existing cross correlation between Atrium Ljungberg AB and Svolder AB, you can compare the effects of market volatilities on Atrium Ljungberg and Svolder AB 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 Svolder AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Ljungberg and Svolder AB.
Diversification Opportunities for Atrium Ljungberg and Svolder AB
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atrium and Svolder is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Ljungberg AB and Svolder AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svolder 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 Svolder AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svolder AB has no effect on the direction of Atrium Ljungberg i.e., Atrium Ljungberg and Svolder AB go up and down completely randomly.
Pair Corralation between Atrium Ljungberg and Svolder AB
Assuming the 90 days trading horizon Atrium Ljungberg AB is expected to generate 1.13 times more return on investment than Svolder AB. However, Atrium Ljungberg is 1.13 times more volatile than Svolder AB. It trades about 0.03 of its potential returns per unit of risk. Svolder AB is currently generating about 0.0 per unit of risk. If you would invest 16,974 in Atrium Ljungberg AB on September 2, 2024 and sell it today you would earn a total of 3,176 from holding Atrium Ljungberg AB or generate 18.71% 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. Svolder AB
Performance |
| Timeline |
| Atrium Ljungberg |
| Svolder AB |
Atrium Ljungberg and Svolder AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Ljungberg and Svolder AB
The main advantage of trading using opposite Atrium Ljungberg and Svolder AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Ljungberg position performs unexpectedly, Svolder AB 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 Svolder AB will offset losses from the drop in Svolder AB's long position.| Atrium Ljungberg vs. Hufvudstaden AB | Atrium Ljungberg vs. Fabege AB | Atrium Ljungberg vs. Wihlborgs Fastigheter AB | Atrium Ljungberg vs. Fastighets AB Balder |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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