Correlation Between AB Traction and Acconeer
Can any of the company-specific risk be diversified away by investing in both AB Traction and Acconeer 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 AB Traction and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB Traction and Acconeer AB, you can compare the effects of market volatilities on AB Traction and Acconeer 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 Traction with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Traction and Acconeer.
Diversification Opportunities for AB Traction and Acconeer
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TRAC-B and Acconeer is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding AB Traction and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and AB Traction 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 Traction are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of AB Traction i.e., AB Traction and Acconeer go up and down completely randomly.
Pair Corralation between AB Traction and Acconeer
Assuming the 90 days trading horizon AB Traction is expected to generate 0.6 times more return on investment than Acconeer. However, AB Traction is 1.67 times less risky than Acconeer. It trades about -0.02 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.35 per unit of risk. If you would invest 28,800 in AB Traction on August 27, 2024 and sell it today you would lose (300.00) from holding AB Traction or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Traction vs. Acconeer AB
Performance |
| Timeline |
| AB Traction |
| Acconeer AB |
AB Traction and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Traction and Acconeer
The main advantage of trading using opposite AB Traction and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Traction position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.| AB Traction vs. Norva24 Group AB | AB Traction vs. KABE Group AB | AB Traction vs. IAR Systems Group | AB Traction vs. Clinical Laserthermia Systems |
| Acconeer vs. Divio Technologies AB | Acconeer vs. XMReality AB | Acconeer vs. KABE Group AB | Acconeer vs. IAR Systems Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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