Correlation Between Peab AB and Train Alliance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Peab AB and Train Alliance Sweden, you can compare the effects of market volatilities on Peab AB and Train Alliance 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 Peab AB with a short position of Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peab AB and Train Alliance.
Diversification Opportunities for Peab AB and Train Alliance
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peab and Train is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Peab AB and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden and Peab 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 Peab AB are associated (or correlated) with Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of Peab AB i.e., Peab AB and Train Alliance go up and down completely randomly.
Pair Corralation between Peab AB and Train Alliance
Assuming the 90 days trading horizon Peab AB is expected to generate 1.6 times less return on investment than Train Alliance. But when comparing it to its historical volatility, Peab AB is 1.45 times less risky than Train Alliance. It trades about 0.06 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,860 in Train Alliance Sweden on September 12, 2025 and sell it today you would earn a total of 115.00 from holding Train Alliance Sweden or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peab AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Peab AB |
| Train Alliance Sweden |
Peab AB and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peab AB and Train Alliance
The main advantage of trading using opposite Peab AB and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peab AB position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance's long position.The idea behind Peab AB and Train Alliance Sweden 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.| Train Alliance vs. eWork Group AB | Train Alliance vs. Viking Supply Ships | Train Alliance vs. Cavotec SA | Train Alliance vs. Bygg Partner i |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |