Correlation Between Arion Banki and Jetpak Top
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By analyzing existing cross correlation between Arion banki hf and Jetpak Top Holding, you can compare the effects of market volatilities on Arion Banki and Jetpak Top 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 Jetpak Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Jetpak Top.
Diversification Opportunities for Arion Banki and Jetpak Top
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arion and Jetpak is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Jetpak Top Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetpak Top Holding 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 Jetpak Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetpak Top Holding has no effect on the direction of Arion Banki i.e., Arion Banki and Jetpak Top go up and down completely randomly.
Pair Corralation between Arion Banki and Jetpak Top
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.21 times more return on investment than Jetpak Top. However, Arion Banki is 1.21 times more volatile than Jetpak Top Holding. It trades about 0.01 of its potential returns per unit of risk. Jetpak Top Holding is currently generating about -0.07 per unit of risk. If you would invest 1,240 in Arion banki hf on September 1, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. Jetpak Top Holding
Performance |
| Timeline |
| Arion banki hf |
| Jetpak Top Holding |
Arion Banki and Jetpak Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Jetpak Top
The main advantage of trading using opposite Arion Banki and Jetpak Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Jetpak Top 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 Jetpak Top will offset losses from the drop in Jetpak Top'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 |
| Jetpak Top vs. Alimak Hek Group | Jetpak Top vs. Balco Group AB | Jetpak Top vs. Bulten AB | Jetpak Top vs. Rejlers 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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