Correlation Between KABE Group and Train Alliance
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By analyzing existing cross correlation between KABE Group AB and Train Alliance Sweden, you can compare the effects of market volatilities on KABE Group 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 KABE Group with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Train Alliance.
Diversification Opportunities for KABE Group and Train Alliance
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KABE and Train is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB 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 KABE Group 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 KABE Group AB 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 KABE Group i.e., KABE Group and Train Alliance go up and down completely randomly.
Pair Corralation between KABE Group and Train Alliance
Assuming the 90 days trading horizon KABE Group AB is expected to generate 0.95 times more return on investment than Train Alliance. However, KABE Group AB is 1.05 times less risky than Train Alliance. It trades about 0.06 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 18,596 in KABE Group AB on September 13, 2024 and sell it today you would earn a total of 11,204 from holding KABE Group AB or generate 60.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KABE Group AB vs. Train Alliance Sweden
Performance |
| Timeline |
| KABE Group AB |
| Train Alliance Sweden |
KABE Group and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Train Alliance
The main advantage of trading using opposite KABE Group and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group 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.| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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