Correlation Between Acrinova and FastPartner
Can any of the company-specific risk be diversified away by investing in both Acrinova and FastPartner 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 Acrinova and FastPartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acrinova AB Series and FastPartner AB, you can compare the effects of market volatilities on Acrinova and FastPartner 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 Acrinova with a short position of FastPartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrinova and FastPartner.
Diversification Opportunities for Acrinova and FastPartner
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acrinova and FastPartner is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Acrinova AB Series and FastPartner AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FastPartner AB and Acrinova 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 Acrinova AB Series are associated (or correlated) with FastPartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FastPartner AB has no effect on the direction of Acrinova i.e., Acrinova and FastPartner go up and down completely randomly.
Pair Corralation between Acrinova and FastPartner
Assuming the 90 days trading horizon Acrinova AB Series is expected to generate 0.78 times more return on investment than FastPartner. However, Acrinova AB Series is 1.28 times less risky than FastPartner. It trades about -0.04 of its potential returns per unit of risk. FastPartner AB is currently generating about -0.05 per unit of risk. If you would invest 944.00 in Acrinova AB Series on September 1, 2024 and sell it today you would lose (14.00) from holding Acrinova AB Series or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acrinova AB Series vs. FastPartner AB
Performance |
| Timeline |
| Acrinova AB Series |
| FastPartner AB |
Acrinova and FastPartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acrinova and FastPartner
The main advantage of trading using opposite Acrinova and FastPartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acrinova position performs unexpectedly, FastPartner 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 FastPartner will offset losses from the drop in FastPartner's long position.| Acrinova vs. Samhaellsbyggnadsbolaget i Norden | Acrinova vs. AB Sagax | Acrinova vs. Atrium Ljungberg AB | Acrinova vs. Nyfosa AB |
| FastPartner vs. Samhaellsbyggnadsbolaget i Norden | FastPartner vs. AB Sagax | FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Nyfosa 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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