Correlation Between Attendo AB and Cloetta AB
Can any of the company-specific risk be diversified away by investing in both Attendo AB and Cloetta AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Attendo AB and Cloetta AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Attendo AB and Cloetta AB, you can compare the effects of market volatilities on Attendo AB and Cloetta 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 Attendo AB with a short position of Cloetta AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attendo AB and Cloetta AB.
Diversification Opportunities for Attendo AB and Cloetta AB
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Attendo and Cloetta is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Attendo AB and Cloetta AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloetta AB and Attendo AB 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 Attendo AB are associated (or correlated) with Cloetta AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloetta AB has no effect on the direction of Attendo AB i.e., Attendo AB and Cloetta AB go up and down completely randomly.
Pair Corralation between Attendo AB and Cloetta AB
Assuming the 90 days trading horizon Attendo AB is expected to generate 1.52 times more return on investment than Cloetta AB. However, Attendo AB is 1.52 times more volatile than Cloetta AB. It trades about 0.09 of its potential returns per unit of risk. Cloetta AB is currently generating about 0.06 per unit of risk. If you would invest 2,368 in Attendo AB on September 1, 2024 and sell it today you would earn a total of 2,492 from holding Attendo AB or generate 105.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Attendo AB vs. Cloetta AB
Performance |
| Timeline |
| Attendo AB |
| Cloetta AB |
Attendo AB and Cloetta AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Attendo AB and Cloetta AB
The main advantage of trading using opposite Attendo AB and Cloetta AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attendo AB position performs unexpectedly, Cloetta 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 Cloetta AB will offset losses from the drop in Cloetta AB's long position.| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava AB |
| Cloetta AB vs. Securitas AB | Cloetta AB vs. Clas Ohlson AB | Cloetta AB vs. Axfood AB | Cloetta AB vs. Byggmax 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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