Correlation Between AB Sagax and AB Sagax
Can any of the company-specific risk be diversified away by investing in both AB Sagax and AB Sagax 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 AB Sagax and AB Sagax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Sagax and AB Sagax, you can compare the effects of market volatilities on AB Sagax and AB Sagax 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 AB Sagax. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and AB Sagax.
Diversification Opportunities for AB Sagax and AB Sagax
Very weak diversification
The 3 months correlation between SAGA-D and SAGA-A is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and AB Sagax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Sagax 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 AB Sagax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Sagax has no effect on the direction of AB Sagax i.e., AB Sagax and AB Sagax go up and down completely randomly.
Pair Corralation between AB Sagax and AB Sagax
Assuming the 90 days trading horizon AB Sagax is expected to generate 0.42 times more return on investment than AB Sagax. However, AB Sagax is 2.37 times less risky than AB Sagax. It trades about 0.08 of its potential returns per unit of risk. AB Sagax is currently generating about 0.0 per unit of risk. If you would invest 2,270 in AB Sagax on November 4, 2024 and sell it today you would earn a total of 895.00 from holding AB Sagax or generate 39.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AB Sagax vs. AB Sagax
Performance |
Timeline |
AB Sagax |
AB Sagax |
AB Sagax and AB Sagax Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AB Sagax and AB Sagax
The main advantage of trading using opposite AB Sagax and AB Sagax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, AB Sagax 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 AB Sagax will offset losses from the drop in AB Sagax'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 |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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