Correlation Between Instalco Intressenter and Alimak Hek
Can any of the company-specific risk be diversified away by investing in both Instalco Intressenter and Alimak Hek 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 Instalco Intressenter and Alimak Hek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Instalco Intressenter AB and Alimak Hek Group, you can compare the effects of market volatilities on Instalco Intressenter and Alimak Hek 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 Instalco Intressenter with a short position of Alimak Hek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Instalco Intressenter and Alimak Hek.
Diversification Opportunities for Instalco Intressenter and Alimak Hek
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Instalco and Alimak is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Instalco Intressenter AB and Alimak Hek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimak Hek Group and Instalco Intressenter 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 Instalco Intressenter AB are associated (or correlated) with Alimak Hek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimak Hek Group has no effect on the direction of Instalco Intressenter i.e., Instalco Intressenter and Alimak Hek go up and down completely randomly.
Pair Corralation between Instalco Intressenter and Alimak Hek
Assuming the 90 days trading horizon Instalco Intressenter AB is expected to under-perform the Alimak Hek. In addition to that, Instalco Intressenter is 1.39 times more volatile than Alimak Hek Group. It trades about -0.01 of its total potential returns per unit of risk. Alimak Hek Group is currently generating about 0.09 per unit of volatility. If you would invest 5,404 in Alimak Hek Group on September 3, 2024 and sell it today you would earn a total of 6,536 from holding Alimak Hek Group or generate 120.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Instalco Intressenter AB vs. Alimak Hek Group
Performance |
| Timeline |
| Instalco Intressenter |
| Alimak Hek Group |
Instalco Intressenter and Alimak Hek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Instalco Intressenter and Alimak Hek
The main advantage of trading using opposite Instalco Intressenter and Alimak Hek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instalco Intressenter position performs unexpectedly, Alimak Hek 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 Alimak Hek will offset losses from the drop in Alimak Hek's long position.| Instalco Intressenter vs. Lifco AB | Instalco Intressenter vs. Sdiptech AB | Instalco Intressenter vs. Vitec Software Group | Instalco Intressenter vs. Addtech AB |
| Alimak Hek vs. Inwido AB | Alimak Hek vs. Bufab Holding AB | Alimak Hek vs. Cloetta AB | Alimak Hek vs. Dometic 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |