Correlation Between Sdiptech and Train Alliance
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By analyzing existing cross correlation between Sdiptech AB and Train Alliance Sweden, you can compare the effects of market volatilities on Sdiptech 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 Sdiptech with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Train Alliance.
Diversification Opportunities for Sdiptech and Train Alliance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sdiptech and Train is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech 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 Sdiptech 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 Sdiptech 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 Sdiptech i.e., Sdiptech and Train Alliance go up and down completely randomly.
Pair Corralation between Sdiptech and Train Alliance
Assuming the 90 days trading horizon Sdiptech AB is expected to generate 1.09 times more return on investment than Train Alliance. However, Sdiptech is 1.09 times more volatile than Train Alliance Sweden. It trades about -0.02 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.03 per unit of risk. If you would invest 28,820 in Sdiptech AB on August 26, 2024 and sell it today you would lose (5,220) from holding Sdiptech AB or give up 18.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sdiptech AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Sdiptech AB |
| Train Alliance Sweden |
Sdiptech and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sdiptech and Train Alliance
The main advantage of trading using opposite Sdiptech and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sdiptech 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.| Sdiptech vs. AB Sagax | Sdiptech vs. ALM Equity AB | Sdiptech vs. KABE Group AB | Sdiptech vs. IAR Systems Group |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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