Correlation Between LumenRadio and Train Alliance
Specify exactly 2 symbols:
By analyzing existing cross correlation between LumenRadio AB and Train Alliance Sweden, you can compare the effects of market volatilities on LumenRadio 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 LumenRadio with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of LumenRadio and Train Alliance.
Diversification Opportunities for LumenRadio and Train Alliance
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between LumenRadio and Train is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LumenRadio 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 LumenRadio 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 LumenRadio 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 LumenRadio i.e., LumenRadio and Train Alliance go up and down completely randomly.
Pair Corralation between LumenRadio and Train Alliance
Assuming the 90 days trading horizon LumenRadio AB is expected to generate 1.67 times more return on investment than Train Alliance. However, LumenRadio is 1.67 times more volatile than Train Alliance Sweden. It trades about -0.1 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.36 per unit of risk. If you would invest 10,680 in LumenRadio AB on September 2, 2024 and sell it today you would lose (460.00) from holding LumenRadio AB or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LumenRadio AB vs. Train Alliance Sweden
Performance |
| Timeline |
| LumenRadio AB |
| Train Alliance Sweden |
LumenRadio and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LumenRadio and Train Alliance
The main advantage of trading using opposite LumenRadio and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LumenRadio 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.| LumenRadio vs. Invisio Communications AB | LumenRadio vs. Online Brands Nordic | LumenRadio vs. Havsfrun Investment AB | LumenRadio vs. G5 Entertainment publ |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |