Correlation Between LED IBond and Alm Brand
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By analyzing existing cross correlation between LED iBond International and Alm Brand, you can compare the effects of market volatilities on LED IBond and Alm Brand 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 LED IBond with a short position of Alm Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and Alm Brand.
Diversification Opportunities for LED IBond and Alm Brand
Very good diversification
The 3 months correlation between LED and Alm is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding LED iBond International and Alm Brand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alm Brand and LED IBond 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 LED iBond International are associated (or correlated) with Alm Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alm Brand has no effect on the direction of LED IBond i.e., LED IBond and Alm Brand go up and down completely randomly.
Pair Corralation between LED IBond and Alm Brand
Assuming the 90 days trading horizon LED iBond International is expected to generate 28.69 times more return on investment than Alm Brand. However, LED IBond is 28.69 times more volatile than Alm Brand. It trades about 0.22 of its potential returns per unit of risk. Alm Brand is currently generating about -0.03 per unit of risk. If you would invest 17.00 in LED iBond International on August 29, 2024 and sell it today you would earn a total of 16.00 from holding LED iBond International or generate 94.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LED iBond International vs. Alm Brand
Performance |
| Timeline |
| LED iBond International |
| Alm Brand |
LED IBond and Alm Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LED IBond and Alm Brand
The main advantage of trading using opposite LED IBond and Alm Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LED IBond position performs unexpectedly, Alm Brand 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 Alm Brand will offset losses from the drop in Alm Brand's long position.| LED IBond vs. Alm Brand | LED IBond vs. Sparinvest INDEX Globale | LED IBond vs. Bavarian Nordic | LED IBond vs. Investeringsselskabet Luxor AS |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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