Correlation Between Rejlers AB and Train Alliance
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By analyzing existing cross correlation between Rejlers AB and Train Alliance Sweden, you can compare the effects of market volatilities on Rejlers AB 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 Rejlers AB with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rejlers AB and Train Alliance.
Diversification Opportunities for Rejlers AB and Train Alliance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rejlers and Train is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Rejlers 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 Rejlers 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 Rejlers 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 Rejlers AB i.e., Rejlers AB and Train Alliance go up and down completely randomly.
Pair Corralation between Rejlers AB and Train Alliance
Assuming the 90 days trading horizon Rejlers AB is expected to under-perform the Train Alliance. But the stock apears to be less risky and, when comparing its historical volatility, Rejlers AB is 1.26 times less risky than Train Alliance. The stock trades about -0.21 of its potential returns per unit of risk. The Train Alliance Sweden is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Train Alliance Sweden on August 26, 2024 and sell it today you would lose (85.00) from holding Train Alliance Sweden or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rejlers AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Rejlers AB |
| Train Alliance Sweden |
Rejlers AB and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rejlers AB and Train Alliance
The main advantage of trading using opposite Rejlers AB and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rejlers AB 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.| Rejlers AB vs. MAG Interactive AB | Rejlers AB vs. Kambi Group PLC | Rejlers AB vs. Hexatronic Group AB | Rejlers AB vs. Integrum AB Series |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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