Correlation Between Arctic Blue and SaveLend Group
Can any of the company-specific risk be diversified away by investing in both Arctic Blue and SaveLend Group 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 SaveLend Group 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 SaveLend Group AB, you can compare the effects of market volatilities on Arctic Blue and SaveLend Group 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 SaveLend Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Blue and SaveLend Group.
Diversification Opportunities for Arctic Blue and SaveLend Group
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arctic and SaveLend is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Blue Beverages and SaveLend Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaveLend Group 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 SaveLend Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaveLend Group AB has no effect on the direction of Arctic Blue i.e., Arctic Blue and SaveLend Group go up and down completely randomly.
Pair Corralation between Arctic Blue and SaveLend Group
Assuming the 90 days trading horizon Arctic Blue Beverages is expected to under-perform the SaveLend Group. But the stock apears to be less risky and, when comparing its historical volatility, Arctic Blue Beverages is 1.28 times less risky than SaveLend Group. The stock trades about -0.46 of its potential returns per unit of risk. The SaveLend Group AB is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 230.00 in SaveLend Group AB on September 12, 2024 and sell it today you would lose (15.00) from holding SaveLend Group AB or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arctic Blue Beverages vs. SaveLend Group AB
Performance |
| Timeline |
| Arctic Blue Beverages |
| SaveLend Group AB |
Arctic Blue and SaveLend Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Blue and SaveLend Group
The main advantage of trading using opposite Arctic Blue and SaveLend Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Blue position performs unexpectedly, SaveLend Group 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 SaveLend Group will offset losses from the drop in SaveLend Group's long position.| Arctic Blue vs. Sdiptech AB | Arctic Blue vs. SolTech Energy Sweden | Arctic Blue vs. White Pearl Technology | Arctic Blue vs. Investment AB Oresund |
| SaveLend Group vs. Smart Eye AB | SaveLend Group vs. Nepa AB | SaveLend Group vs. MAG Interactive AB | SaveLend Group vs. Hexatronic Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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