Correlation Between Acconeer and Cantargia
Can any of the company-specific risk be diversified away by investing in both Acconeer and Cantargia 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 Acconeer and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acconeer AB and Cantargia AB, you can compare the effects of market volatilities on Acconeer and Cantargia 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 Acconeer with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and Cantargia.
Diversification Opportunities for Acconeer and Cantargia
Very weak diversification
The 3 months correlation between Acconeer and Cantargia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Acconeer 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 Acconeer AB are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Acconeer i.e., Acconeer and Cantargia go up and down completely randomly.
Pair Corralation between Acconeer and Cantargia
Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the Cantargia. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 1.03 times less risky than Cantargia. The stock trades about -0.06 of its potential returns per unit of risk. The Cantargia AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 499.00 in Cantargia AB on November 5, 2024 and sell it today you would lose (312.00) from holding Cantargia AB or give up 62.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acconeer AB vs. Cantargia AB
Performance |
| Timeline |
| Acconeer AB |
| Cantargia AB |
Acconeer and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acconeer and Cantargia
The main advantage of trading using opposite Acconeer and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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