Correlation Between SMX Public and ALJ Regional
Can any of the company-specific risk be diversified away by investing in both SMX Public and ALJ Regional 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 SMX Public and ALJ Regional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMX Public Limited and ALJ Regional Holdings, you can compare the effects of market volatilities on SMX Public and ALJ Regional 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 SMX Public with a short position of ALJ Regional. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMX Public and ALJ Regional.
Diversification Opportunities for SMX Public and ALJ Regional
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMX and ALJ is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SMX Public Limited and ALJ Regional Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALJ Regional Holdings and SMX Public 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 SMX Public Limited are associated (or correlated) with ALJ Regional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALJ Regional Holdings has no effect on the direction of SMX Public i.e., SMX Public and ALJ Regional go up and down completely randomly.
Pair Corralation between SMX Public and ALJ Regional
If you would invest 199.00 in ALJ Regional Holdings on August 31, 2024 and sell it today you would earn a total of 0.00 from holding ALJ Regional Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
SMX Public Limited vs. ALJ Regional Holdings
Performance |
| Timeline |
| SMX Public Limited |
| ALJ Regional Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SMX Public and ALJ Regional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMX Public and ALJ Regional
The main advantage of trading using opposite SMX Public and ALJ Regional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMX Public position performs unexpectedly, ALJ Regional 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 ALJ Regional will offset losses from the drop in ALJ Regional's long position.| SMX Public vs. Team Inc | SMX Public vs. Lichen China Limited | SMX Public vs. System1 | SMX Public vs. Eastman Kodak Co |
| ALJ Regional vs. Dexterra Group | ALJ Regional vs. Intertek Group Plc | ALJ Regional vs. Wildpack Beverage | ALJ Regional vs. DATA Communications Management |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |