Correlation Between Fundamental Invest and Alefarm Brewing
Can any of the company-specific risk be diversified away by investing in both Fundamental Invest and Alefarm Brewing 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 Fundamental Invest and Alefarm Brewing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Invest Stock and Alefarm Brewing AS, you can compare the effects of market volatilities on Fundamental Invest and Alefarm Brewing 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 Fundamental Invest with a short position of Alefarm Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Invest and Alefarm Brewing.
Diversification Opportunities for Fundamental Invest and Alefarm Brewing
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fundamental and Alefarm is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Invest Stock and Alefarm Brewing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alefarm Brewing AS and Fundamental Invest 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 Fundamental Invest Stock are associated (or correlated) with Alefarm Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alefarm Brewing AS has no effect on the direction of Fundamental Invest i.e., Fundamental Invest and Alefarm Brewing go up and down completely randomly.
Pair Corralation between Fundamental Invest and Alefarm Brewing
Assuming the 90 days trading horizon Fundamental Invest Stock is expected to under-perform the Alefarm Brewing. But the stock apears to be less risky and, when comparing its historical volatility, Fundamental Invest Stock is 3.21 times less risky than Alefarm Brewing. The stock trades about -0.16 of its potential returns per unit of risk. The Alefarm Brewing AS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Alefarm Brewing AS on August 29, 2024 and sell it today you would lose (2.00) from holding Alefarm Brewing AS or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Invest Stock vs. Alefarm Brewing AS
Performance |
| Timeline |
| Fundamental Invest Stock |
| Alefarm Brewing AS |
Fundamental Invest and Alefarm Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Invest and Alefarm Brewing
The main advantage of trading using opposite Fundamental Invest and Alefarm Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Invest position performs unexpectedly, Alefarm Brewing 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 Alefarm Brewing will offset losses from the drop in Alefarm Brewing's long position.| Fundamental Invest vs. Alefarm Brewing AS | Fundamental Invest vs. Ringkjoebing Landbobank AS | Fundamental Invest vs. Sydbank AS | Fundamental Invest vs. Nordfyns Bank AS |
| Alefarm Brewing vs. Bavarian Nordic | Alefarm Brewing vs. Gyldendal AS | Alefarm Brewing vs. Investeringsselskabet Luxor AS | Alefarm Brewing vs. Jyske Invest Virksomhedsobligationer |
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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