Correlation Between AB Sagax and ALM Equity
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By analyzing existing cross correlation between AB Sagax and ALM Equity AB, you can compare the effects of market volatilities on AB Sagax 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 AB Sagax with a short position of ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and ALM Equity.
Diversification Opportunities for AB Sagax and ALM Equity
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAGA-D and ALM is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax 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 AB Sagax 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 AB Sagax 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 AB Sagax i.e., AB Sagax and ALM Equity go up and down completely randomly.
Pair Corralation between AB Sagax and ALM Equity
Assuming the 90 days trading horizon AB Sagax is expected to generate 1.04 times more return on investment than ALM Equity. However, AB Sagax is 1.04 times more volatile than ALM Equity AB. It trades about -0.22 of its potential returns per unit of risk. ALM Equity AB is currently generating about -0.27 per unit of risk. If you would invest 3,235 in AB Sagax on August 29, 2024 and sell it today you would lose (105.00) from holding AB Sagax or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. ALM Equity AB
Performance |
| Timeline |
| AB Sagax |
| ALM Equity AB |
AB Sagax and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and ALM Equity
The main advantage of trading using opposite AB Sagax and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax 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.| AB Sagax vs. AB Sagax | AB Sagax vs. Samhaellsbyggnadsbolaget i Norden | AB Sagax vs. AB Sagax | AB Sagax vs. Fastighets AB Balder |
| ALM Equity vs. Indutrade AB | ALM Equity vs. Invisio Communications AB | ALM Equity vs. Train Alliance Sweden | ALM Equity vs. Beowulf Mining PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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