Correlation Between Arion Banki and Scout Gaming
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By analyzing existing cross correlation between Arion banki hf and Scout Gaming Group, you can compare the effects of market volatilities on Arion Banki and Scout Gaming 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 Scout Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Scout Gaming.
Diversification Opportunities for Arion Banki and Scout Gaming
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Arion and Scout is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Scout Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Gaming Group 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 Scout Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Gaming Group has no effect on the direction of Arion Banki i.e., Arion Banki and Scout Gaming go up and down completely randomly.
Pair Corralation between Arion Banki and Scout Gaming
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.27 times more return on investment than Scout Gaming. However, Arion banki hf is 3.77 times less risky than Scout Gaming. It trades about 0.07 of its potential returns per unit of risk. Scout Gaming Group is currently generating about 0.01 per unit of risk. If you would invest 1,090 in Arion banki hf on September 3, 2024 and sell it today you would earn a total of 150.00 from holding Arion banki hf or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. Scout Gaming Group
Performance |
| Timeline |
| Arion banki hf |
| Scout Gaming Group |
Arion Banki and Scout Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Scout Gaming
The main advantage of trading using opposite Arion Banki and Scout Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Scout Gaming 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 Scout Gaming will offset losses from the drop in Scout Gaming'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 |
| Scout Gaming vs. Idogen AB | Scout Gaming vs. Clean Motion AB | Scout Gaming vs. Arion banki hf | Scout Gaming vs. KABE Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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