Correlation Between AQ Group and Acconeer
Can any of the company-specific risk be diversified away by investing in both AQ Group and Acconeer 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 AQ Group and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AQ Group AB and Acconeer AB, you can compare the effects of market volatilities on AQ Group and Acconeer 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 AQ Group with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AQ Group and Acconeer.
Diversification Opportunities for AQ Group and Acconeer
Excellent diversification
The 3 months correlation between AQ Group and Acconeer is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AQ Group AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and AQ 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 AQ Group AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of AQ Group i.e., AQ Group and Acconeer go up and down completely randomly.
Pair Corralation between AQ Group and Acconeer
Assuming the 90 days horizon AQ Group AB is expected to generate 1.05 times more return on investment than Acconeer. However, AQ Group is 1.05 times more volatile than Acconeer AB. It trades about 0.36 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.03 per unit of risk. If you would invest 13,818 in AQ Group AB on October 26, 2024 and sell it today you would earn a total of 2,740 from holding AQ Group AB or generate 19.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AQ Group AB vs. Acconeer AB
Performance |
| Timeline |
| AQ Group AB |
| Acconeer AB |
AQ Group and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AQ Group and Acconeer
The main advantage of trading using opposite AQ Group and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AQ Group position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.| AQ Group vs. Inwido AB | AQ Group vs. Bufab Holding AB | AQ Group vs. Beijer Alma AB | AQ Group vs. Addtech AB |
| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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