Correlation Between Train Alliance and Footway Group
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By analyzing existing cross correlation between Train Alliance Sweden and Footway Group AB, you can compare the effects of market volatilities on Train Alliance and Footway Group 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 Train Alliance with a short position of Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and Footway Group.
Diversification Opportunities for Train Alliance and Footway Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Train and Footway is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB and Train Alliance 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 Train Alliance Sweden are associated (or correlated) with Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of Train Alliance i.e., Train Alliance and Footway Group go up and down completely randomly.
Pair Corralation between Train Alliance and Footway Group
Assuming the 90 days trading horizon Train Alliance Sweden is expected to generate 0.46 times more return on investment than Footway Group. However, Train Alliance Sweden is 2.16 times less risky than Footway Group. It trades about -0.04 of its potential returns per unit of risk. Footway Group AB is currently generating about -0.23 per unit of risk. If you would invest 1,990 in Train Alliance Sweden on August 25, 2024 and sell it today you would lose (55.00) from holding Train Alliance Sweden or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. Footway Group AB
Performance |
| Timeline |
| Train Alliance Sweden |
| Footway Group AB |
Train Alliance and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Train Alliance and Footway Group
The main advantage of trading using opposite Train Alliance and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance position performs unexpectedly, Footway Group 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 Footway Group will offset losses from the drop in Footway Group's long position.| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers AB |
| Footway Group vs. Beowulf Mining PLC | Footway Group vs. Train Alliance Sweden | Footway Group vs. FormPipe Software AB | Footway Group vs. Flexion Mobile PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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