Correlation Between FM Mattsson and Train Alliance
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By analyzing existing cross correlation between FM Mattsson Mora and Train Alliance Sweden, you can compare the effects of market volatilities on FM Mattsson and Train Alliance 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 FM Mattsson with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of FM Mattsson and Train Alliance.
Diversification Opportunities for FM Mattsson and Train Alliance
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between FMM-B and Train is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding FM Mattsson Mora and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden and FM Mattsson 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 FM Mattsson Mora are associated (or correlated) with Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of FM Mattsson i.e., FM Mattsson and Train Alliance go up and down completely randomly.
Pair Corralation between FM Mattsson and Train Alliance
Assuming the 90 days trading horizon FM Mattsson Mora is expected to generate 1.02 times more return on investment than Train Alliance. However, FM Mattsson is 1.02 times more volatile than Train Alliance Sweden. It trades about 0.04 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.02 per unit of risk. If you would invest 4,381 in FM Mattsson Mora on August 29, 2024 and sell it today you would earn a total of 759.00 from holding FM Mattsson Mora or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FM Mattsson Mora vs. Train Alliance Sweden
Performance |
| Timeline |
| FM Mattsson Mora |
| Train Alliance Sweden |
FM Mattsson and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FM Mattsson and Train Alliance
The main advantage of trading using opposite FM Mattsson and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FM Mattsson position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance's long position.| FM Mattsson vs. Hexagon AB | FM Mattsson vs. Investor AB ser | FM Mattsson vs. Investment AB Latour | FM Mattsson vs. ASSA ABLOY AB |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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