Correlation Between Train Alliance and Peab AB
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By analyzing existing cross correlation between Train Alliance Sweden and Peab AB, you can compare the effects of market volatilities on Train Alliance and Peab AB 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and Peab AB.
Diversification Opportunities for Train Alliance and Peab AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Train and Peab is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Train Alliance i.e., Train Alliance and Peab AB go up and down completely randomly.
Pair Corralation between Train Alliance and Peab AB
Assuming the 90 days trading horizon Train Alliance Sweden is expected to generate 0.78 times more return on investment than Peab AB. However, Train Alliance Sweden is 1.29 times less risky than Peab AB. It trades about 0.15 of its potential returns per unit of risk. Peab AB is currently generating about 0.03 per unit of risk. If you would invest 1,835 in Train Alliance Sweden on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Train Alliance Sweden or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. Peab AB
Performance |
| Timeline |
| Train Alliance Sweden |
| Peab AB |
Train Alliance and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Train Alliance and Peab AB
The main advantage of trading using opposite Train Alliance and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance position performs unexpectedly, Peab AB 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 Peab AB will offset losses from the drop in Peab AB'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 |
| Peab AB vs. Maven Wireless Sweden | Peab AB vs. Bio Works Technologies AB | Peab AB vs. Train Alliance Sweden | Peab AB vs. Catena Media 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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