Correlation Between Arion Banki and Linc AB
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By analyzing existing cross correlation between Arion banki hf and Linc AB, you can compare the effects of market volatilities on Arion Banki and Linc AB 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 Linc AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Linc AB.
Diversification Opportunities for Arion Banki and Linc AB
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arion and Linc is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Linc AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linc 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 Linc AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linc AB has no effect on the direction of Arion Banki i.e., Arion Banki and Linc AB go up and down completely randomly.
Pair Corralation between Arion Banki and Linc AB
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.25 times more return on investment than Linc AB. However, Arion Banki is 1.25 times more volatile than Linc AB. It trades about 0.09 of its potential returns per unit of risk. Linc AB is currently generating about -0.24 per unit of risk. If you would invest 1,165 in Arion banki hf on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Arion banki hf or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. Linc AB
Performance |
| Timeline |
| Arion banki hf |
| Linc AB |
Arion Banki and Linc AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Linc AB
The main advantage of trading using opposite Arion Banki and Linc AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Linc AB 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 Linc AB will offset losses from the drop in Linc AB'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 |
| Linc AB vs. L E Lundbergfretagen | Linc AB vs. Industrivarden AB ser | Linc AB vs. Svenska Handelsbanken AB | Linc AB vs. Investment AB Latour |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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