Correlation Between Arion Banki and Ferronordic
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By analyzing existing cross correlation between Arion banki hf and Ferronordic AB, you can compare the effects of market volatilities on Arion Banki and Ferronordic 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 Ferronordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Ferronordic.
Diversification Opportunities for Arion Banki and Ferronordic
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and Ferronordic is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Ferronordic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferronordic 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 Ferronordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferronordic AB has no effect on the direction of Arion Banki i.e., Arion Banki and Ferronordic go up and down completely randomly.
Pair Corralation between Arion Banki and Ferronordic
Assuming the 90 days trading horizon Arion Banki is expected to generate 2.29 times less return on investment than Ferronordic. But when comparing it to its historical volatility, Arion banki hf is 2.04 times less risky than Ferronordic. It trades about 0.02 of its potential returns per unit of risk. Ferronordic AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,914 in Ferronordic AB on September 4, 2024 and sell it today you would earn a total of 906.00 from holding Ferronordic AB or generate 18.44% 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. Ferronordic AB
Performance |
| Timeline |
| Arion banki hf |
| Ferronordic AB |
Arion Banki and Ferronordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Ferronordic
The main advantage of trading using opposite Arion Banki and Ferronordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Ferronordic 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 Ferronordic will offset losses from the drop in Ferronordic'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 |
| Ferronordic vs. JLT Mobile Computers | Ferronordic vs. White Pearl Technology | Ferronordic vs. Upsales Technology AB | Ferronordic vs. Beowulf Mining PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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