Correlation Between IAR Systems and Train Alliance
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By analyzing existing cross correlation between IAR Systems Group and Train Alliance Sweden, you can compare the effects of market volatilities on IAR Systems 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 IAR Systems with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAR Systems and Train Alliance.
Diversification Opportunities for IAR Systems and Train Alliance
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IAR and Train is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IAR Systems Group 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 IAR Systems 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 IAR Systems Group 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 IAR Systems i.e., IAR Systems and Train Alliance go up and down completely randomly.
Pair Corralation between IAR Systems and Train Alliance
Assuming the 90 days trading horizon IAR Systems Group is expected to generate 1.23 times more return on investment than Train Alliance. However, IAR Systems is 1.23 times more volatile than Train Alliance Sweden. It trades about 0.01 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.03 per unit of risk. If you would invest 14,713 in IAR Systems Group on September 13, 2024 and sell it today you would lose (13.00) from holding IAR Systems Group or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IAR Systems Group vs. Train Alliance Sweden
Performance |
| Timeline |
| IAR Systems Group |
| Train Alliance Sweden |
IAR Systems and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAR Systems and Train Alliance
The main advantage of trading using opposite IAR Systems and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAR Systems 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.| IAR Systems vs. CellaVision AB | IAR Systems vs. HMS Networks AB | IAR Systems vs. Enea AB | IAR Systems vs. Know IT AB |
| Train Alliance vs. Systemair AB | Train Alliance vs. Garo AB | Train Alliance vs. KABE Group AB | Train Alliance vs. IAR Systems Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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