Correlation Between Paradox Interactive and Alpcot Holding
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By analyzing existing cross correlation between Paradox Interactive AB and Alpcot Holding AB, you can compare the effects of market volatilities on Paradox Interactive and Alpcot Holding 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 Paradox Interactive with a short position of Alpcot Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paradox Interactive and Alpcot Holding.
Diversification Opportunities for Paradox Interactive and Alpcot Holding
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Paradox and Alpcot is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Paradox Interactive AB and Alpcot Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpcot Holding AB and Paradox Interactive 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 Paradox Interactive AB are associated (or correlated) with Alpcot Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpcot Holding AB has no effect on the direction of Paradox Interactive i.e., Paradox Interactive and Alpcot Holding go up and down completely randomly.
Pair Corralation between Paradox Interactive and Alpcot Holding
Assuming the 90 days trading horizon Paradox Interactive AB is expected to generate 0.42 times more return on investment than Alpcot Holding. However, Paradox Interactive AB is 2.39 times less risky than Alpcot Holding. It trades about 0.25 of its potential returns per unit of risk. Alpcot Holding AB is currently generating about 0.02 per unit of risk. If you would invest 18,400 in Paradox Interactive AB on September 25, 2024 and sell it today you would earn a total of 1,620 from holding Paradox Interactive AB or generate 8.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Paradox Interactive AB vs. Alpcot Holding AB
Performance |
Timeline |
Paradox Interactive |
Alpcot Holding AB |
Paradox Interactive and Alpcot Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Paradox Interactive and Alpcot Holding
The main advantage of trading using opposite Paradox Interactive and Alpcot Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paradox Interactive position performs unexpectedly, Alpcot Holding 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 Alpcot Holding will offset losses from the drop in Alpcot Holding's long position.Paradox Interactive vs. Samhllsbyggnadsbolaget i Norden | Paradox Interactive vs. Sinch AB | Paradox Interactive vs. Zaptec AS | Paradox Interactive vs. Evolution AB |
Alpcot Holding vs. KebNi AB | Alpcot Holding vs. Checkin Group AB | Alpcot Holding vs. Freemelt Holding AB | Alpcot Holding vs. Unibap AB |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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