Correlation Between Aallon Group and Rush Factory

Can any of the company-specific risk be diversified away by investing in both Aallon Group and Rush Factory at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aallon Group and Rush Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aallon Group Oyj and Rush Factory Oyj, you can compare the effects of market volatilities on Aallon Group and Rush Factory 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 Aallon Group with a short position of Rush Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aallon Group and Rush Factory.

Diversification Opportunities for Aallon Group and Rush Factory

0.0

Correlation Coefficient

Aallon Group  Rush Factory

Pay attention - limited upside

The 3 months correlation between Aallon and Rush is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aallon Group Oyj and Rush Factory Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Factory Oyj and Aallon Group 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 Aallon Group Oyj are associated (or correlated) with Rush Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Factory Oyj has no effect on the direction of Aallon Group i.e., Aallon Group and Rush Factory go up and down completely randomly.

Pair Corralation between Aallon Group and Rush Factory

If you would invest  843.00  in Aallon Group Oyj on December 30, 2024 and sell it today you would earn a total of  157.00  from holding Aallon Group Oyj or generate 18.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Aallon Group Oyj  vs.  Rush Factory Oyj

Aallon Group Oyj

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aallon Group Oyj are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Aallon Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Rush Factory Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rush Factory Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Rush Factory is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aallon Group and Rush Factory

The main advantage of trading using opposite Aallon Group and Rush Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aallon Group position performs unexpectedly, Rush Factory 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 Rush Factory will offset losses from the drop in Rush Factory's long position.

The idea behind Aallon Group Oyj and Rush Factory Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.