Correlation Between Train Alliance and LumenRadio
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By analyzing existing cross correlation between Train Alliance Sweden and LumenRadio AB, you can compare the effects of market volatilities on Train Alliance and LumenRadio 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 LumenRadio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and LumenRadio.
Diversification Opportunities for Train Alliance and LumenRadio
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Train and LumenRadio is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden and LumenRadio AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LumenRadio 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 LumenRadio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LumenRadio AB has no effect on the direction of Train Alliance i.e., Train Alliance and LumenRadio go up and down completely randomly.
Pair Corralation between Train Alliance and LumenRadio
Assuming the 90 days trading horizon Train Alliance Sweden is expected to under-perform the LumenRadio. In addition to that, Train Alliance is 1.15 times more volatile than LumenRadio AB. It trades about -0.24 of its total potential returns per unit of risk. LumenRadio AB is currently generating about -0.1 per unit of volatility. If you would invest 10,200 in LumenRadio AB on November 28, 2024 and sell it today you would lose (350.00) from holding LumenRadio AB or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. LumenRadio AB
Performance |
| Timeline |
| Train Alliance Sweden |
| LumenRadio AB |
Train Alliance and LumenRadio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Train Alliance and LumenRadio
The main advantage of trading using opposite Train Alliance and LumenRadio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance position performs unexpectedly, LumenRadio 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 LumenRadio will offset losses from the drop in LumenRadio'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 |
| LumenRadio vs. White Pearl Technology | LumenRadio vs. Skandinaviska Enskilda Banken | LumenRadio vs. Invisio Communications AB | LumenRadio vs. Lundin Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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