Correlation Between Arctic Blue and AVTECH Sweden
Can any of the company-specific risk be diversified away by investing in both Arctic Blue and AVTECH Sweden 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 Blue and AVTECH Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arctic Blue Beverages and AVTECH Sweden AB, you can compare the effects of market volatilities on Arctic Blue and AVTECH Sweden 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 Blue with a short position of AVTECH Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Blue and AVTECH Sweden.
Diversification Opportunities for Arctic Blue and AVTECH Sweden
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arctic and AVTECH is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Blue Beverages and AVTECH Sweden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVTECH Sweden AB and Arctic Blue 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 Blue Beverages are associated (or correlated) with AVTECH Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVTECH Sweden AB has no effect on the direction of Arctic Blue i.e., Arctic Blue and AVTECH Sweden go up and down completely randomly.
Pair Corralation between Arctic Blue and AVTECH Sweden
Assuming the 90 days trading horizon Arctic Blue Beverages is expected to under-perform the AVTECH Sweden. But the stock apears to be less risky and, when comparing its historical volatility, Arctic Blue Beverages is 1.13 times less risky than AVTECH Sweden. The stock trades about -0.44 of its potential returns per unit of risk. The AVTECH Sweden AB is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 442.00 in AVTECH Sweden AB on August 29, 2024 and sell it today you would lose (47.00) from holding AVTECH Sweden AB or give up 10.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Blue Beverages vs. AVTECH Sweden AB
Performance |
| Timeline |
| Arctic Blue Beverages |
| AVTECH Sweden AB |
Arctic Blue and AVTECH Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Blue and AVTECH Sweden
The main advantage of trading using opposite Arctic Blue and AVTECH Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Blue position performs unexpectedly, AVTECH Sweden 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 AVTECH Sweden will offset losses from the drop in AVTECH Sweden's long position.| Arctic Blue vs. Cint Group AB | Arctic Blue vs. Nordic Waterproofing Holding | Arctic Blue vs. Inwido AB | Arctic Blue vs. KABE Group AB |
| AVTECH Sweden vs. AroCell AB | AVTECH Sweden vs. aXichem AB | AVTECH Sweden vs. Gaming Corps AB | AVTECH Sweden vs. Alelion Energy Systems |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance |