Correlation Between Arion Banki and Clas Ohlson
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arion banki hf and Clas Ohlson AB, you can compare the effects of market volatilities on Arion Banki and Clas Ohlson 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 Clas Ohlson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Clas Ohlson.
Diversification Opportunities for Arion Banki and Clas Ohlson
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arion and Clas is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Clas Ohlson AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clas Ohlson 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 Clas Ohlson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clas Ohlson AB has no effect on the direction of Arion Banki i.e., Arion Banki and Clas Ohlson go up and down completely randomly.
Pair Corralation between Arion Banki and Clas Ohlson
Assuming the 90 days trading horizon Arion Banki is expected to generate 58.96 times less return on investment than Clas Ohlson. But when comparing it to its historical volatility, Arion banki hf is 1.11 times less risky than Clas Ohlson. It trades about 0.01 of its potential returns per unit of risk. Clas Ohlson AB is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 17,510 in Clas Ohlson AB on September 1, 2024 and sell it today you would earn a total of 2,190 from holding Clas Ohlson AB or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arion banki hf vs. Clas Ohlson AB
Performance |
| Timeline |
| Arion banki hf |
| Clas Ohlson AB |
Arion Banki and Clas Ohlson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Clas Ohlson
The main advantage of trading using opposite Arion Banki and Clas Ohlson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Clas Ohlson 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 Clas Ohlson will offset losses from the drop in Clas Ohlson'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 |
| Clas Ohlson vs. Tele2 AB | Clas Ohlson vs. Axfood AB | Clas Ohlson vs. Telia Company AB | Clas Ohlson vs. Byggmax 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |