Correlation Between TalkPool and Alimak Hek

Can any of the company-specific risk be diversified away by investing in both TalkPool and Alimak Hek 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 TalkPool and Alimak Hek into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for TalkPool and Alimak Hek

0.0

Correlation Coefficient

TalkPool  Alimak Hek

Pay attention - limited upside

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

Pair Corralation between TalkPool and Alimak Hek

If you would invest  10,320  in Alimak Hek Group on September 4, 2024 and sell it today you would earn a total of  1,740  from holding Alimak Hek Group or generate 16.86% return on investment over 90 days.

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

TalkPool AG  vs.  Alimak Hek Group

TalkPool AG

Risk-Adjusted Performance

0 of 100

Very Weak

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

Alimak Hek Group

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alimak Hek Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Alimak Hek unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TalkPool and Alimak Hek

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

The idea behind TalkPool AG and Alimak Hek Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..