Correlation Between Arion Banki and Platzer Fastigheter
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By analyzing existing cross correlation between Arion banki hf and Platzer Fastigheter Holding, you can compare the effects of market volatilities on Arion Banki and Platzer Fastigheter 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 Platzer Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Platzer Fastigheter.
Diversification Opportunities for Arion Banki and Platzer Fastigheter
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and Platzer is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Platzer Fastigheter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platzer Fastigheter 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 Platzer Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platzer Fastigheter has no effect on the direction of Arion Banki i.e., Arion Banki and Platzer Fastigheter go up and down completely randomly.
Pair Corralation between Arion Banki and Platzer Fastigheter
Assuming the 90 days trading horizon Arion Banki is expected to generate 3.08 times less return on investment than Platzer Fastigheter. But when comparing it to its historical volatility, Arion banki hf is 1.41 times less risky than Platzer Fastigheter. It trades about 0.02 of its potential returns per unit of risk. Platzer Fastigheter Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,736 in Platzer Fastigheter Holding on September 12, 2024 and sell it today you would earn a total of 1,764 from holding Platzer Fastigheter Holding or generate 26.19% 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. Platzer Fastigheter Holding
Performance |
| Timeline |
| Arion banki hf |
| Platzer Fastigheter |
Arion Banki and Platzer Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Platzer Fastigheter
The main advantage of trading using opposite Arion Banki and Platzer Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Platzer Fastigheter 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 Platzer Fastigheter will offset losses from the drop in Platzer Fastigheter's long position.| Arion Banki vs. Nordea Bank Abp | Arion Banki vs. Skandinaviska Enskilda Banken | Arion Banki vs. Skandinaviska Enskilda Banken | Arion Banki vs. Swedbank AB |
| Platzer Fastigheter vs. Arion banki hf | Platzer Fastigheter vs. eEducation Albert AB | Platzer Fastigheter vs. USWE Sports AB | Platzer Fastigheter vs. MTI Investment SE |
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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