Correlation Between Bergman Beving and ALM Equity
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By analyzing existing cross correlation between Bergman Beving AB and ALM Equity AB, you can compare the effects of market volatilities on Bergman Beving 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 Bergman Beving with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bergman Beving and ALM Equity.
Diversification Opportunities for Bergman Beving and ALM Equity
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bergman and ALM is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bergman Beving 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 Bergman Beving 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 Bergman Beving 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 Bergman Beving i.e., Bergman Beving and ALM Equity go up and down completely randomly.
Pair Corralation between Bergman Beving and ALM Equity
Assuming the 90 days trading horizon Bergman Beving AB is expected to generate 3.32 times more return on investment than ALM Equity. However, Bergman Beving is 3.32 times more volatile than ALM Equity AB. It trades about -0.07 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.23 per unit of risk. If you would invest 29,550 in Bergman Beving AB on September 4, 2024 and sell it today you would lose (1,050) from holding Bergman Beving AB or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bergman Beving AB vs. ALM Equity AB
Performance |
| Timeline |
| Bergman Beving AB |
| ALM Equity AB |
Bergman Beving and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bergman Beving and ALM Equity
The main advantage of trading using opposite Bergman Beving and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bergman Beving 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.| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding AB |
| ALM Equity vs. Lundin Mining | ALM Equity vs. AcadeMedia AB | ALM Equity vs. Redsense Medical AB | ALM Equity vs. 24SevenOffice Scandinavia 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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