Correlation Between AAC Clyde and IZafe Group
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By analyzing existing cross correlation between AAC Clyde Space and iZafe Group AB, you can compare the effects of market volatilities on AAC Clyde and IZafe Group 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 AAC Clyde with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and IZafe Group.
Diversification Opportunities for AAC Clyde and IZafe Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAC and IZafe is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and AAC Clyde 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 AAC Clyde Space are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of AAC Clyde i.e., AAC Clyde and IZafe Group go up and down completely randomly.
Pair Corralation between AAC Clyde and IZafe Group
Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 1.04 times more return on investment than IZafe Group. However, AAC Clyde is 1.04 times more volatile than iZafe Group AB. It trades about 0.22 of its potential returns per unit of risk. iZafe Group AB is currently generating about -0.05 per unit of risk. If you would invest 3,530 in AAC Clyde Space on August 28, 2024 and sell it today you would earn a total of 965.00 from holding AAC Clyde Space or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AAC Clyde Space vs. iZafe Group AB
Performance |
| Timeline |
| AAC Clyde Space |
| iZafe Group AB |
AAC Clyde and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Clyde and IZafe Group
The main advantage of trading using opposite AAC Clyde and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Clyde position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
| IZafe Group vs. Sprint Bioscience AB | IZafe Group vs. Acarix AS | IZafe Group vs. Annexin Pharmaceuticals 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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