Correlation Between Arion Banki and Adventure Box
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By analyzing existing cross correlation between Arion banki hf and Adventure Box Technology, you can compare the effects of market volatilities on Arion Banki and Adventure Box 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 Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Adventure Box.
Diversification Opportunities for Arion Banki and Adventure Box
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arion and Adventure is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology 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 Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Arion Banki i.e., Arion Banki and Adventure Box go up and down completely randomly.
Pair Corralation between Arion Banki and Adventure Box
Assuming the 90 days trading horizon Arion Banki is expected to generate 16.03 times less return on investment than Adventure Box. But when comparing it to its historical volatility, Arion banki hf is 12.87 times less risky than Adventure Box. It trades about 0.04 of its potential returns per unit of risk. Adventure Box Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Adventure Box Technology on September 4, 2024 and sell it today you would lose (2.00) from holding Adventure Box Technology or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. Adventure Box Technology
Performance |
| Timeline |
| Arion banki hf |
| Adventure Box Technology |
Arion Banki and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Adventure Box
The main advantage of trading using opposite Arion Banki and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.| Arion Banki vs. Atrium Ljungberg AB | Arion Banki vs. Arjo AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding |
| Adventure Box vs. Idogen AB | Adventure Box vs. Clean Motion AB | Adventure Box vs. Arion banki hf | Adventure Box vs. KABE 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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