Correlation Between Arion Banki and NAXS Nordic
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By analyzing existing cross correlation between Arion banki hf and NAXS Nordic Access, you can compare the effects of market volatilities on Arion Banki and NAXS Nordic 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 NAXS Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and NAXS Nordic.
Diversification Opportunities for Arion Banki and NAXS Nordic
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and NAXS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and NAXS Nordic Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAXS Nordic Access 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 NAXS Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAXS Nordic Access has no effect on the direction of Arion Banki i.e., Arion Banki and NAXS Nordic go up and down completely randomly.
Pair Corralation between Arion Banki and NAXS Nordic
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.5 times more return on investment than NAXS Nordic. However, Arion Banki is 1.5 times more volatile than NAXS Nordic Access. It trades about 0.01 of its potential returns per unit of risk. NAXS Nordic Access is currently generating about -0.24 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. NAXS Nordic Access
Performance |
| Timeline |
| Arion banki hf |
| NAXS Nordic Access |
Arion Banki and NAXS Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and NAXS Nordic
The main advantage of trading using opposite Arion Banki and NAXS Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, NAXS Nordic 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 NAXS Nordic will offset losses from the drop in NAXS Nordic'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 |
| NAXS Nordic vs. AB Traction | NAXS Nordic vs. Havsfrun Investment AB | NAXS Nordic vs. Novotek AB | NAXS Nordic vs. Investment AB Oresund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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