Correlation Between Arion Banki and High Coast
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By analyzing existing cross correlation between Arion banki hf and High Coast Distillery, you can compare the effects of market volatilities on Arion Banki and High Coast 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 High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and High Coast.
Diversification Opportunities for Arion Banki and High Coast
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arion and High is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery 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 High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of Arion Banki i.e., Arion Banki and High Coast go up and down completely randomly.
Pair Corralation between Arion Banki and High Coast
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.54 times more return on investment than High Coast. However, Arion banki hf is 1.84 times less risky than High Coast. It trades about 0.03 of its potential returns per unit of risk. High Coast Distillery is currently generating about 0.0 per unit of risk. If you would invest 1,124 in Arion banki hf on October 24, 2024 and sell it today you would earn a total of 226.00 from holding Arion banki hf or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. High Coast Distillery
Performance |
| Timeline |
| Arion banki hf |
| High Coast Distillery |
Arion Banki and High Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and High Coast
The main advantage of trading using opposite Arion Banki and High Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, High Coast 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 High Coast will offset losses from the drop in High Coast'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 |
| High Coast vs. Arion banki hf | High Coast vs. FormPipe Software AB | High Coast vs. Leading Edge Materials | High Coast vs. Swedbank 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.
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