Correlation Between Alibaba Group and Handelsinvest Danmark
Can any of the company-specific risk be diversified away by investing in both Alibaba Group and Handelsinvest Danmark 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 Alibaba Group and Handelsinvest Danmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alibaba Group Holding and Handelsinvest Danmark, you can compare the effects of market volatilities on Alibaba Group and Handelsinvest Danmark 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 Alibaba Group with a short position of Handelsinvest Danmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Handelsinvest Danmark.
Diversification Opportunities for Alibaba Group and Handelsinvest Danmark
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alibaba and Handelsinvest is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Handelsinvest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Danmark and Alibaba 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 Alibaba Group Holding are associated (or correlated) with Handelsinvest Danmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Danmark has no effect on the direction of Alibaba Group i.e., Alibaba Group and Handelsinvest Danmark go up and down completely randomly.
Pair Corralation between Alibaba Group and Handelsinvest Danmark
Given the investment horizon of 90 days Alibaba Group Holding is expected to generate 2.72 times more return on investment than Handelsinvest Danmark. However, Alibaba Group is 2.72 times more volatile than Handelsinvest Danmark. It trades about 0.13 of its potential returns per unit of risk. Handelsinvest Danmark is currently generating about -0.13 per unit of risk. If you would invest 7,148 in Alibaba Group Holding on January 26, 2024 and sell it today you would earn a total of 315.00 from holding Alibaba Group Holding or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Alibaba Group Holding vs. Handelsinvest Danmark
Performance |
| Timeline |
| Alibaba Group Holding |
| Handelsinvest Danmark |
Alibaba Group and Handelsinvest Danmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alibaba Group and Handelsinvest Danmark
The main advantage of trading using opposite Alibaba Group and Handelsinvest Danmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, Handelsinvest Danmark 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 Handelsinvest Danmark will offset losses from the drop in Handelsinvest Danmark's long position.| Alibaba Group vs. Sea | Alibaba Group vs. Vipshop Holdings Limited | Alibaba Group vs. Amazon Inc | Alibaba Group vs. JD Inc Adr |
| Handelsinvest Danmark vs. Jyske Invest Nye | Handelsinvest Danmark vs. Jyske Invest Nye | Handelsinvest Danmark vs. Jyske Invest Hjt | Handelsinvest Danmark vs. Jyske Invest Lange |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |