Correlation Between Arion Banki and Bambuser
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By analyzing existing cross correlation between Arion banki hf and Bambuser AB, you can compare the effects of market volatilities on Arion Banki and Bambuser 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 Bambuser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Bambuser.
Diversification Opportunities for Arion Banki and Bambuser
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and Bambuser is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser 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 Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Arion Banki i.e., Arion Banki and Bambuser go up and down completely randomly.
Pair Corralation between Arion Banki and Bambuser
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.32 times more return on investment than Bambuser. However, Arion banki hf is 3.08 times less risky than Bambuser. It trades about 0.01 of its potential returns per unit of risk. Bambuser AB is currently generating about -0.22 per unit of risk. If you would invest 1,200 in Arion banki hf on August 25, 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 Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arion banki hf vs. Bambuser AB
Performance |
| Timeline |
| Arion banki hf |
| Bambuser AB |
Arion Banki and Bambuser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Bambuser
The main advantage of trading using opposite Arion Banki and Bambuser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Bambuser 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 Bambuser will offset losses from the drop in Bambuser'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 |
| Bambuser vs. Spectrumone publ AB | Bambuser vs. Media and Games | Bambuser vs. Enersize Oy | Bambuser vs. Cantargia 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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