Correlation Between AB Sagax and Volati AB
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By analyzing existing cross correlation between AB Sagax and Volati AB, you can compare the effects of market volatilities on AB Sagax and Volati AB 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 Volati AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Sagax and Volati AB.
Diversification Opportunities for AB Sagax and Volati AB
Modest diversification
The 3 months correlation between SAGA-D and Volati is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AB Sagax and Volati AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volati 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 Volati AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volati AB has no effect on the direction of AB Sagax i.e., AB Sagax and Volati AB go up and down completely randomly.
Pair Corralation between AB Sagax and Volati AB
Assuming the 90 days trading horizon AB Sagax is expected to generate 3.17 times more return on investment than Volati AB. However, AB Sagax is 3.17 times more volatile than Volati AB. It trades about 0.09 of its potential returns per unit of risk. Volati AB is currently generating about 0.09 per unit of risk. If you would invest 3,080 in AB Sagax on October 26, 2024 and sell it today you would earn a total of 30.00 from holding AB Sagax or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Sagax vs. Volati AB
Performance |
| Timeline |
| AB Sagax |
| Volati AB |
AB Sagax and Volati AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Sagax and Volati AB
The main advantage of trading using opposite AB Sagax and Volati AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Sagax position performs unexpectedly, Volati AB 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 Volati AB will offset losses from the drop in Volati AB'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 |
| Volati AB vs. AB Sagax | Volati AB vs. Corem Property Group | Volati AB vs. Samhaellsbyggnadsbolaget i Norden | Volati AB vs. Volati 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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