Correlation Between Arctic Gold and Kakel Max
Can any of the company-specific risk be diversified away by investing in both Arctic Gold and Kakel Max 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 Arctic Gold and Kakel Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arctic Gold Publ and Kakel Max AB, you can compare the effects of market volatilities on Arctic Gold and Kakel Max 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 Arctic Gold with a short position of Kakel Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Gold and Kakel Max.
Diversification Opportunities for Arctic Gold and Kakel Max
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arctic and Kakel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Gold Publ and Kakel Max AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakel Max AB and Arctic Gold 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 Arctic Gold Publ are associated (or correlated) with Kakel Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakel Max AB has no effect on the direction of Arctic Gold i.e., Arctic Gold and Kakel Max go up and down completely randomly.
Pair Corralation between Arctic Gold and Kakel Max
Assuming the 90 days trading horizon Arctic Gold Publ is expected to generate 2.44 times more return on investment than Kakel Max. However, Arctic Gold is 2.44 times more volatile than Kakel Max AB. It trades about 0.0 of its potential returns per unit of risk. Kakel Max AB is currently generating about -0.05 per unit of risk. If you would invest 53.00 in Arctic Gold Publ on September 3, 2024 and sell it today you would lose (26.00) from holding Arctic Gold Publ or give up 49.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Gold Publ vs. Kakel Max AB
Performance |
| Timeline |
| Arctic Gold Publ |
| Kakel Max AB |
Arctic Gold and Kakel Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Gold and Kakel Max
The main advantage of trading using opposite Arctic Gold and Kakel Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Gold position performs unexpectedly, Kakel Max 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 Kakel Max will offset losses from the drop in Kakel Max's long position.| Arctic Gold vs. Auriant Mining AB | Arctic Gold vs. aXichem AB | Arctic Gold vs. Clean Motion AB | Arctic Gold vs. KABE Group AB |
| Kakel Max vs. aXichem AB | Kakel Max vs. Polygiene AB | Kakel Max vs. Nordic Iron Ore | Kakel Max vs. Arctic Gold Publ |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |