Correlation Between Arion Banki and 24SevenOffice Scandinavia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arion banki hf and 24SevenOffice Scandinavia AB, you can compare the effects of market volatilities on Arion Banki and 24SevenOffice Scandinavia 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 Arion Banki with a short position of 24SevenOffice Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and 24SevenOffice Scandinavia.
Diversification Opportunities for Arion Banki and 24SevenOffice Scandinavia
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arion and 24SevenOffice is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and 24SevenOffice Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 24SevenOffice Scandinavia and Arion Banki 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 Arion banki hf are associated (or correlated) with 24SevenOffice Scandinavia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 24SevenOffice Scandinavia has no effect on the direction of Arion Banki i.e., Arion Banki and 24SevenOffice Scandinavia go up and down completely randomly.
Pair Corralation between Arion Banki and 24SevenOffice Scandinavia
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.98 times more return on investment than 24SevenOffice Scandinavia. However, Arion Banki is 1.98 times more volatile than 24SevenOffice Scandinavia AB. It trades about 0.01 of its potential returns per unit of risk. 24SevenOffice Scandinavia AB is currently generating about -0.16 per unit of risk. If you would invest 1,240 in Arion banki hf on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Arion banki hf or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. 24SevenOffice Scandinavia AB
Performance |
| Timeline |
| Arion banki hf |
| 24SevenOffice Scandinavia |
Arion Banki and 24SevenOffice Scandinavia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and 24SevenOffice Scandinavia
The main advantage of trading using opposite Arion Banki and 24SevenOffice Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia will offset losses from the drop in 24SevenOffice Scandinavia's long position.| Arion Banki vs. Svenska Handelsbanken AB | Arion Banki vs. Telia Company AB | Arion Banki vs. Tele2 AB | Arion Banki vs. H M Hennes |
| 24SevenOffice Scandinavia vs. Nordic Asia Investment | 24SevenOffice Scandinavia vs. SaveLend Group AB | 24SevenOffice Scandinavia vs. USWE Sports AB | 24SevenOffice Scandinavia vs. MTI Investment SE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |