Correlation Between Alpcot Holding and 4C Group

Can any of the company-specific risk be diversified away by investing in both Alpcot Holding and 4C Group 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 Alpcot Holding and 4C Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpcot Holding AB and 4C Group AB, you can compare the effects of market volatilities on Alpcot Holding and 4C Group 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 Alpcot Holding with a short position of 4C Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpcot Holding and 4C Group.

Diversification Opportunities for Alpcot Holding and 4C Group

0.0

Correlation Coefficient

Alpcot Holding  4C Group

Pay attention - limited upside

The 3 months correlation between Alpcot and 4C Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alpcot Holding AB and 4C Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4C Group AB and Alpcot Holding 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 Alpcot Holding AB are associated (or correlated) with 4C Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4C Group AB has no effect on the direction of Alpcot Holding i.e., Alpcot Holding and 4C Group go up and down completely randomly.

Pair Corralation between Alpcot Holding and 4C Group

If you would invest  64.00  in Alpcot Holding AB on October 9, 2024 and sell it today you would lose (3.00) from holding Alpcot Holding AB or give up 4.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Alpcot Holding AB  vs.  4C Group AB

Alpcot Holding AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpcot Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alpcot Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

4C Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 4C Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, 4C Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Alpcot Holding and 4C Group

The main advantage of trading using opposite Alpcot Holding and 4C Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpcot Holding position performs unexpectedly, 4C Group 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 4C Group will offset losses from the drop in 4C Group's long position.

The idea behind Alpcot Holding AB and 4C Group AB 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.