Correlation Between Svenska Handelsbanken and Alligo AB
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By analyzing existing cross correlation between Svenska Handelsbanken AB and Alligo AB Series, you can compare the effects of market volatilities on Svenska Handelsbanken 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 Svenska Handelsbanken with a short position of Alligo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Svenska Handelsbanken and Alligo AB.
Diversification Opportunities for Svenska Handelsbanken and Alligo AB
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Svenska and Alligo is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Svenska Handelsbanken 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 Svenska Handelsbanken 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 Svenska Handelsbanken 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 Svenska Handelsbanken i.e., Svenska Handelsbanken and Alligo AB go up and down completely randomly.
Pair Corralation between Svenska Handelsbanken and Alligo AB
Assuming the 90 days trading horizon Svenska Handelsbanken AB is expected to generate 0.66 times more return on investment than Alligo AB. However, Svenska Handelsbanken AB is 1.51 times less risky than Alligo AB. It trades about 0.05 of its potential returns per unit of risk. Alligo AB Series is currently generating about 0.01 per unit of risk. If you would invest 8,756 in Svenska Handelsbanken AB on September 1, 2024 and sell it today you would earn a total of 2,594 from holding Svenska Handelsbanken AB or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Svenska Handelsbanken AB vs. Alligo AB Series
Performance |
| Timeline |
| Svenska Handelsbanken |
| Alligo AB Series |
Svenska Handelsbanken and Alligo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Svenska Handelsbanken and Alligo AB
The main advantage of trading using opposite Svenska Handelsbanken and Alligo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Svenska Handelsbanken 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.| Svenska Handelsbanken vs. Swedbank AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Tele2 AB | Svenska Handelsbanken vs. Telia Company AB |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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