Correlation Between Arion Banki and Skandinaviska Enskilda
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By analyzing existing cross correlation between Arion banki hf and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Arion Banki and Skandinaviska Enskilda 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 Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Skandinaviska Enskilda.
Diversification Opportunities for Arion Banki and Skandinaviska Enskilda
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arion and Skandinaviska is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Arion Banki i.e., Arion Banki and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Arion Banki and Skandinaviska Enskilda
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.14 times more return on investment than Skandinaviska Enskilda. However, Arion Banki is 1.14 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.09 of its potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.0 per unit of risk. If you would invest 1,240 in Arion banki hf on August 31, 2024 and sell it today you would earn a total of 30.00 from holding Arion banki hf or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arion banki hf vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Arion banki hf |
| Skandinaviska Enskilda |
Arion Banki and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Skandinaviska Enskilda
The main advantage of trading using opposite Arion Banki and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda'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 |
| Skandinaviska Enskilda vs. Swedbank AB | Skandinaviska Enskilda vs. Svenska Handelsbanken AB | Skandinaviska Enskilda vs. H M Hennes | Skandinaviska Enskilda vs. Telefonaktiebolaget LM Ericsson |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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