Correlation Between Investment and Train Alliance
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By analyzing existing cross correlation between Investment AB Oresund and Train Alliance Sweden, you can compare the effects of market volatilities on Investment 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 Investment with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Train Alliance.
Diversification Opportunities for Investment and Train Alliance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investment and Train is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment AB Oresund 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 Investment 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 Investment AB Oresund 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 Investment i.e., Investment and Train Alliance go up and down completely randomly.
Pair Corralation between Investment and Train Alliance
Assuming the 90 days trading horizon Investment AB Oresund is expected to generate 1.21 times more return on investment than Train Alliance. However, Investment is 1.21 times more volatile than Train Alliance Sweden. It trades about -0.05 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 11,340 in Investment AB Oresund on September 2, 2024 and sell it today you would lose (180.00) from holding Investment AB Oresund or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment AB Oresund vs. Train Alliance Sweden
Performance |
| Timeline |
| Investment AB Oresund |
| Train Alliance Sweden |
Investment and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Train Alliance
The main advantage of trading using opposite Investment and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment 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.| Investment vs. Bure Equity AB | Investment vs. Creades AB | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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