Correlation Between Private Equity and Alpine Select
Can any of the company-specific risk be diversified away by investing in both Private Equity and Alpine Select at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Private Equity and Alpine Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Private Equity Holding and Alpine Select AG, you can compare the effects of market volatilities on Private Equity and Alpine Select 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 Private Equity with a short position of Alpine Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Private Equity and Alpine Select.
Diversification Opportunities for Private Equity and Alpine Select
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Private and Alpine is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Private Equity Holding and Alpine Select AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Select AG and Private Equity 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 Private Equity Holding are associated (or correlated) with Alpine Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Select AG has no effect on the direction of Private Equity i.e., Private Equity and Alpine Select go up and down completely randomly.
Pair Corralation between Private Equity and Alpine Select
Assuming the 90 days trading horizon Private Equity Holding is expected to generate 0.67 times more return on investment than Alpine Select. However, Private Equity Holding is 1.48 times less risky than Alpine Select. It trades about -0.02 of its potential returns per unit of risk. Alpine Select AG is currently generating about -0.04 per unit of risk. If you would invest 7,000 in Private Equity Holding on September 1, 2024 and sell it today you would lose (40.00) from holding Private Equity Holding or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
Private Equity Holding vs. Alpine Select AG
Performance |
| Timeline |
| Private Equity Holding |
| Alpine Select AG |
Private Equity and Alpine Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Private Equity and Alpine Select
The main advantage of trading using opposite Private Equity and Alpine Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Private Equity position performs unexpectedly, Alpine Select 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 Alpine Select will offset losses from the drop in Alpine Select's long position.| Private Equity vs. HIAG Immobilien Holding | Private Equity vs. Bellevue Group AG | Private Equity vs. Feintool International Holding | Private Equity vs. Procimmo Real Estate |
| Alpine Select vs. Nebag ag | Alpine Select vs. Carlo Gavazzi Holding | Alpine Select vs. Private Equity Holding | Alpine Select vs. Bellevue Group AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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