Correlation Between Serstech and Alligo AB
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By analyzing existing cross correlation between Serstech AB and Alligo AB Series, you can compare the effects of market volatilities on Serstech and Alligo 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 Serstech with a short position of Alligo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Serstech and Alligo AB.
Diversification Opportunities for Serstech and Alligo AB
Very good diversification
The 3 months correlation between Serstech and Alligo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Serstech AB and Alligo AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alligo AB Series and Serstech 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 Serstech AB are associated (or correlated) with Alligo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alligo AB Series has no effect on the direction of Serstech i.e., Serstech and Alligo AB go up and down completely randomly.
Pair Corralation between Serstech and Alligo AB
Assuming the 90 days trading horizon Serstech AB is expected to generate 1.95 times more return on investment than Alligo AB. However, Serstech is 1.95 times more volatile than Alligo AB Series. It trades about 0.22 of its potential returns per unit of risk. Alligo AB Series is currently generating about -0.16 per unit of risk. If you would invest 102.00 in Serstech AB on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Serstech AB or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Serstech AB vs. Alligo AB Series
Performance |
| Timeline |
| Serstech AB |
| Alligo AB Series |
Serstech and Alligo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Serstech and Alligo AB
The main advantage of trading using opposite Serstech and Alligo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Serstech position performs unexpectedly, Alligo 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 Alligo AB will offset losses from the drop in Alligo AB's long position.The idea behind Serstech AB and Alligo AB Series pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alligo AB vs. AddLife AB | Alligo AB vs. Bufab Holding AB | Alligo AB vs. Bergman Beving AB | Alligo AB vs. AQ Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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