Correlation Between Skanska AB and Alpcot Holding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Skanska AB and Alpcot Holding AB, you can compare the effects of market volatilities on Skanska AB 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 Skanska AB with a short position of Alpcot Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skanska AB and Alpcot Holding.
Diversification Opportunities for Skanska AB and Alpcot Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skanska and Alpcot is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Skanska 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 Skanska AB 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 Skanska 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 Skanska AB i.e., Skanska AB and Alpcot Holding go up and down completely randomly.
Pair Corralation between Skanska AB and Alpcot Holding
Assuming the 90 days trading horizon Skanska AB is expected to generate 0.24 times more return on investment than Alpcot Holding. However, Skanska AB is 4.23 times less risky than Alpcot Holding. It trades about 0.15 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 18,960 in Skanska AB on September 25, 2024 and sell it today you would earn a total of 4,160 from holding Skanska AB or generate 21.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.22% |
Values | Daily Returns |
Skanska AB vs. Alpcot Holding AB
Performance |
Timeline |
Skanska AB |
Alpcot Holding AB |
Skanska AB and Alpcot Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Skanska AB and Alpcot Holding
The main advantage of trading using opposite Skanska AB and Alpcot Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skanska AB 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.Skanska AB vs. Sweco AB | Skanska AB vs. Bravida Holding AB | Skanska AB vs. Afry AB | Skanska AB vs. Instalco Intressenter 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |