Correlation Between Nordic Asia and ALM Equity
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nordic Asia Investment and ALM Equity AB, you can compare the effects of market volatilities on Nordic Asia and ALM Equity 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 Nordic Asia with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Asia and ALM Equity.
Diversification Opportunities for Nordic Asia and ALM Equity
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nordic and ALM is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Asia Investment and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity AB and Nordic Asia 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 Nordic Asia Investment are associated (or correlated) with ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of Nordic Asia i.e., Nordic Asia and ALM Equity go up and down completely randomly.
Pair Corralation between Nordic Asia and ALM Equity
Assuming the 90 days trading horizon Nordic Asia Investment is expected to generate 3.23 times more return on investment than ALM Equity. However, Nordic Asia is 3.23 times more volatile than ALM Equity AB. It trades about 0.17 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.3 per unit of risk. If you would invest 280.00 in Nordic Asia Investment on September 14, 2024 and sell it today you would earn a total of 24.00 from holding Nordic Asia Investment or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Asia Investment vs. ALM Equity AB
Performance |
| Timeline |
| Nordic Asia Investment |
| ALM Equity AB |
Nordic Asia and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Asia and ALM Equity
The main advantage of trading using opposite Nordic Asia and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Asia position performs unexpectedly, ALM Equity 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 Equity will offset losses from the drop in ALM Equity's long position.| Nordic Asia vs. Catella AB | Nordic Asia vs. Catella AB A | Nordic Asia vs. KABE Group AB | Nordic Asia vs. IAR Systems Group |
| ALM Equity vs. Fabege AB | ALM Equity vs. Castellum AB | ALM Equity vs. Wallenstam AB | ALM Equity vs. Fastighets AB Balder |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |