Correlation Between Arion Banki and Sileon AB
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By analyzing existing cross correlation between Arion banki hf and Sileon AB, you can compare the effects of market volatilities on Arion Banki and Sileon 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 Sileon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Sileon AB.
Diversification Opportunities for Arion Banki and Sileon AB
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arion and Sileon is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Sileon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sileon 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 Sileon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sileon AB has no effect on the direction of Arion Banki i.e., Arion Banki and Sileon AB go up and down completely randomly.
Pair Corralation between Arion Banki and Sileon AB
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.22 times more return on investment than Sileon AB. However, Arion banki hf is 4.56 times less risky than Sileon AB. It trades about 0.03 of its potential returns per unit of risk. Sileon AB is currently generating about -0.1 per unit of risk. If you would invest 1,174 in Arion banki hf on September 24, 2024 and sell it today you would earn a total of 151.00 from holding Arion banki hf or generate 12.86% 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. Sileon AB
Performance |
| Timeline |
| Arion banki hf |
| Sileon AB |
Arion Banki and Sileon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Sileon AB
The main advantage of trading using opposite Arion Banki and Sileon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Sileon 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 Sileon AB will offset losses from the drop in Sileon AB's long position.The idea behind Arion banki hf and Sileon AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sileon AB vs. Enersize Oy | Sileon AB vs. Divio Technologies AB | Sileon AB vs. Mekonomen AB | Sileon AB vs. Embellence 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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