Correlation Between Arion Banki and 4C Group
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By analyzing existing cross correlation between Arion banki hf and 4C Group AB, you can compare the effects of market volatilities on Arion Banki and 4C 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 Arion Banki with a short position of 4C Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and 4C Group.
Diversification Opportunities for Arion Banki and 4C Group
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and 4C Group is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and 4C Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4C Group AB 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 4C Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4C Group AB has no effect on the direction of Arion Banki i.e., Arion Banki and 4C Group go up and down completely randomly.
Pair Corralation between Arion Banki and 4C Group
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.57 times more return on investment than 4C Group. However, Arion banki hf is 1.76 times less risky than 4C Group. It trades about 0.14 of its potential returns per unit of risk. 4C Group AB is currently generating about -0.3 per unit of risk. If you would invest 1,200 in Arion banki hf on September 24, 2024 and sell it today you would earn a total of 125.00 from holding Arion banki hf or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. 4C Group AB
Performance |
| Timeline |
| Arion banki hf |
| 4C Group AB |
Arion Banki and 4C Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and 4C Group
The main advantage of trading using opposite Arion Banki and 4C Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, 4C 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 4C Group will offset losses from the drop in 4C Group'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 |
| 4C Group vs. B3 Consulting Group | 4C Group vs. Sleep Cycle AB | 4C Group vs. Avensia publ AB | 4C Group vs. CAG 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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