Correlation Between Nyfosa AB and ALM Equity
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By analyzing existing cross correlation between Nyfosa AB and ALM Equity AB, you can compare the effects of market volatilities on Nyfosa AB 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 Nyfosa AB with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nyfosa AB and ALM Equity.
Diversification Opportunities for Nyfosa AB and ALM Equity
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nyfosa and ALM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nyfosa AB 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 Nyfosa AB 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 Nyfosa AB 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 Nyfosa AB i.e., Nyfosa AB and ALM Equity go up and down completely randomly.
Pair Corralation between Nyfosa AB and ALM Equity
Assuming the 90 days trading horizon Nyfosa AB is expected to under-perform the ALM Equity. In addition to that, Nyfosa AB is 2.85 times more volatile than ALM Equity AB. It trades about -0.15 of its total potential returns per unit of risk. ALM Equity AB is currently generating about -0.19 per unit of volatility. If you would invest 9,070 in ALM Equity AB on September 5, 2024 and sell it today you would lose (450.00) from holding ALM Equity AB or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nyfosa AB vs. ALM Equity AB
Performance |
| Timeline |
| Nyfosa AB |
| ALM Equity AB |
Nyfosa AB and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nyfosa AB and ALM Equity
The main advantage of trading using opposite Nyfosa AB and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nyfosa AB 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.| Nyfosa AB vs. AstraZeneca PLC | Nyfosa AB vs. Investor AB ser | Nyfosa AB vs. Investor AB ser | Nyfosa AB vs. Atlas Copco AB |
| ALM Equity vs. Acrinova AB | ALM Equity vs. Nyfosa AB | ALM Equity vs. ALM Equity AB | ALM Equity vs. K2A Knaust Andersson |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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