Correlation Between Arctic Blue and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Arctic Blue and Awardit AB 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 Awardit AB 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 Awardit AB, you can compare the effects of market volatilities on Arctic Blue and Awardit AB 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 Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Blue and Awardit AB.
Diversification Opportunities for Arctic Blue and Awardit AB
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arctic and Awardit is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Blue Beverages and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit 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 Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Arctic Blue i.e., Arctic Blue and Awardit AB go up and down completely randomly.
Pair Corralation between Arctic Blue and Awardit AB
Assuming the 90 days trading horizon Arctic Blue Beverages is expected to under-perform the Awardit AB. In addition to that, Arctic Blue is 2.1 times more volatile than Awardit AB. It trades about -0.44 of its total potential returns per unit of risk. Awardit AB is currently generating about 0.01 per unit of volatility. If you would invest 13,000 in Awardit AB on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Awardit AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Blue Beverages vs. Awardit AB
Performance |
| Timeline |
| Arctic Blue Beverages |
| Awardit AB |
Arctic Blue and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Blue and Awardit AB
The main advantage of trading using opposite Arctic Blue and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Blue position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB'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 |
| Awardit AB vs. Nordic Asia Investment | Awardit AB vs. Arctic Blue Beverages | Awardit AB vs. Flexion Mobile PLC | Awardit AB vs. Invisio Communications 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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