Correlation Between Indutrade and Alligo AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Indutrade AB and Alligo AB Series, you can compare the effects of market volatilities on Indutrade and Alligo AB 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 Indutrade with a short position of Alligo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indutrade and Alligo AB.
Diversification Opportunities for Indutrade and Alligo AB
Poor diversification
The 3 months correlation between Indutrade and Alligo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Indutrade AB and Alligo AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligo AB Series and Indutrade 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 Indutrade AB are associated (or correlated) with Alligo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligo AB Series has no effect on the direction of Indutrade i.e., Indutrade and Alligo AB go up and down completely randomly.
Pair Corralation between Indutrade and Alligo AB
Assuming the 90 days trading horizon Indutrade AB is expected to generate 0.77 times more return on investment than Alligo AB. However, Indutrade AB is 1.3 times less risky than Alligo AB. It trades about 0.02 of its potential returns per unit of risk. Alligo AB Series is currently generating about 0.01 per unit of risk. If you would invest 25,869 in Indutrade AB on September 1, 2024 and sell it today you would earn a total of 1,971 from holding Indutrade AB or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Indutrade AB vs. Alligo AB Series
Performance |
| Timeline |
| Indutrade AB |
| Alligo AB Series |
Indutrade and Alligo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indutrade and Alligo AB
The main advantage of trading using opposite Indutrade and Alligo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indutrade position performs unexpectedly, Alligo AB 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 Alligo AB will offset losses from the drop in Alligo AB's long position.| Indutrade vs. Lifco AB | Indutrade vs. Addtech AB | Indutrade vs. NIBE Industrier AB | Indutrade vs. Investment AB Latour |
| Alligo AB vs. AddLife AB | Alligo AB vs. Bufab Holding AB | Alligo AB vs. Bergman Beving AB | Alligo AB vs. AQ Group 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |