Correlation Between ALM Classic and BEKA LUX
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By analyzing existing cross correlation between ALM Classic RA and BEKA LUX SICAV, you can compare the effects of market volatilities on ALM Classic and BEKA LUX 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 ALM Classic with a short position of BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Classic and BEKA LUX.
Diversification Opportunities for ALM Classic and BEKA LUX
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ALM and BEKA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ALM Classic RA and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV and ALM Classic 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 ALM Classic RA are associated (or correlated) with BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of ALM Classic i.e., ALM Classic and BEKA LUX go up and down completely randomly.
Pair Corralation between ALM Classic and BEKA LUX
Assuming the 90 days trading horizon ALM Classic RA is expected to generate 0.93 times more return on investment than BEKA LUX. However, ALM Classic RA is 1.07 times less risky than BEKA LUX. It trades about 0.24 of its potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.18 per unit of risk. If you would invest 36,870 in ALM Classic RA on September 6, 2024 and sell it today you would earn a total of 1,238 from holding ALM Classic RA or generate 3.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
ALM Classic RA vs. BEKA LUX SICAV
Performance |
Timeline |
ALM Classic RA |
BEKA LUX SICAV |
ALM Classic and BEKA LUX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALM Classic and BEKA LUX
The main advantage of trading using opposite ALM Classic and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Classic position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.ALM Classic vs. ALM Offensif | ALM Classic vs. Esfera Robotics R | ALM Classic vs. R co Valor F | ALM Classic vs. CM AM Monplus NE |
BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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