Correlation Between ATWEC Technologies and Assa Abloy
Can any of the company-specific risk be diversified away by investing in both ATWEC Technologies and Assa Abloy 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 ATWEC Technologies and Assa Abloy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATWEC Technologies and Assa Abloy AB, you can compare the effects of market volatilities on ATWEC Technologies and Assa Abloy 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 ATWEC Technologies with a short position of Assa Abloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATWEC Technologies and Assa Abloy.
Diversification Opportunities for ATWEC Technologies and Assa Abloy
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATWEC and Assa is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ATWEC Technologies and Assa Abloy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assa Abloy AB and ATWEC Technologies 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 ATWEC Technologies are associated (or correlated) with Assa Abloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assa Abloy AB has no effect on the direction of ATWEC Technologies i.e., ATWEC Technologies and Assa Abloy go up and down completely randomly.
Pair Corralation between ATWEC Technologies and Assa Abloy
Given the investment horizon of 90 days ATWEC Technologies is expected to generate 14.85 times more return on investment than Assa Abloy. However, ATWEC Technologies is 14.85 times more volatile than Assa Abloy AB. It trades about 0.08 of its potential returns per unit of risk. Assa Abloy AB is currently generating about -0.04 per unit of risk. If you would invest 0.13 in ATWEC Technologies on September 2, 2024 and sell it today you would lose (0.01) from holding ATWEC Technologies or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
ATWEC Technologies vs. Assa Abloy AB
Performance |
| Timeline |
| ATWEC Technologies |
| Assa Abloy AB |
ATWEC Technologies and Assa Abloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATWEC Technologies and Assa Abloy
The main advantage of trading using opposite ATWEC Technologies and Assa Abloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATWEC Technologies position performs unexpectedly, Assa Abloy 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 Assa Abloy will offset losses from the drop in Assa Abloy's long position.| ATWEC Technologies vs. Allegion PLC | ATWEC Technologies vs. MSA Safety | ATWEC Technologies vs. HUMANA INC | ATWEC Technologies vs. Aquagold International |
| Assa Abloy vs. Atlas Copco AB | Assa Abloy vs. Carlsberg AS | Assa Abloy vs. DSV Panalpina AS | Assa Abloy vs. Alfa Laval 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |