Correlation Between AB Traction and Implantica
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By analyzing existing cross correlation between AB Traction and Implantica AG, you can compare the effects of market volatilities on AB Traction and Implantica 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 Implantica. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Traction and Implantica.
Diversification Opportunities for AB Traction and Implantica
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRAC-B and Implantica is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding AB Traction and Implantica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Implantica AG 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 Implantica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Implantica AG has no effect on the direction of AB Traction i.e., AB Traction and Implantica go up and down completely randomly.
Pair Corralation between AB Traction and Implantica
Assuming the 90 days trading horizon AB Traction is expected to generate 0.52 times more return on investment than Implantica. However, AB Traction is 1.91 times less risky than Implantica. It trades about -0.04 of its potential returns per unit of risk. Implantica AG is currently generating about -0.16 per unit of risk. If you would invest 28,100 in AB Traction on September 1, 2024 and sell it today you would lose (500.00) from holding AB Traction or give up 1.78% 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. Implantica AG
Performance |
| Timeline |
| AB Traction |
| Implantica AG |
AB Traction and Implantica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Traction and Implantica
The main advantage of trading using opposite AB Traction and Implantica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Traction position performs unexpectedly, Implantica 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 Implantica will offset losses from the drop in Implantica's long position.The idea behind AB Traction and Implantica AG 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.| Implantica vs. Bonesupport Holding AB | Implantica vs. Surgical Science Sweden | Implantica vs. Storytel 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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