Correlation Between BEKA LUX and ALM Classic
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By analyzing existing cross correlation between BEKA LUX SICAV and ALM Classic RA, you can compare the effects of market volatilities on BEKA LUX and ALM Classic 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 BEKA LUX with a short position of ALM Classic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEKA LUX and ALM Classic.
Diversification Opportunities for BEKA LUX and ALM Classic
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BEKA and ALM is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BEKA LUX SICAV and ALM Classic RA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Classic RA and BEKA LUX 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 BEKA LUX SICAV are associated (or correlated) with ALM Classic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Classic RA has no effect on the direction of BEKA LUX i.e., BEKA LUX and ALM Classic go up and down completely randomly.
Pair Corralation between BEKA LUX and ALM Classic
Assuming the 90 days trading horizon BEKA LUX is expected to generate 1.27 times less return on investment than ALM Classic. In addition to that, BEKA LUX is 1.07 times more volatile than ALM Classic RA. It trades about 0.17 of its total potential returns per unit of risk. ALM Classic RA is currently generating about 0.24 per unit of volatility. 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 |
BEKA LUX SICAV vs. ALM Classic RA
Performance |
Timeline |
BEKA LUX SICAV |
ALM Classic RA |
BEKA LUX and ALM Classic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BEKA LUX and ALM Classic
The main advantage of trading using opposite BEKA LUX and ALM Classic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEKA LUX position performs unexpectedly, ALM Classic 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 ALM Classic will offset losses from the drop in ALM Classic's long position.BEKA LUX vs. Esfera Robotics R | BEKA LUX vs. R co Valor F | BEKA LUX vs. CM AM Monplus NE | BEKA LUX vs. IE00B0H4TS55 |
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 |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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