Correlation Between Arion Banki and TalkPool
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By analyzing existing cross correlation between Arion banki hf and TalkPool AG, you can compare the effects of market volatilities on Arion Banki and TalkPool 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 TalkPool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and TalkPool.
Diversification Opportunities for Arion Banki and TalkPool
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and TalkPool is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and TalkPool AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TalkPool AG 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 TalkPool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TalkPool AG has no effect on the direction of Arion Banki i.e., Arion Banki and TalkPool go up and down completely randomly.
Pair Corralation between Arion Banki and TalkPool
Assuming the 90 days trading horizon Arion Banki is expected to generate 5.19 times less return on investment than TalkPool. But when comparing it to its historical volatility, Arion banki hf is 2.87 times less risky than TalkPool. It trades about 0.02 of its potential returns per unit of risk. TalkPool AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 520.00 in TalkPool AG on August 29, 2024 and sell it today you would earn a total of 140.00 from holding TalkPool AG or generate 26.92% 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. TalkPool AG
Performance |
| Timeline |
| Arion banki hf |
| TalkPool AG |
Arion Banki and TalkPool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and TalkPool
The main advantage of trading using opposite Arion Banki and TalkPool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, TalkPool 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 TalkPool will offset losses from the drop in TalkPool's long position.| Arion Banki vs. Atrium Ljungberg AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding | Arion Banki vs. Autoliv |
| TalkPool vs. Embracer Group AB | TalkPool vs. Samhllsbyggnadsbolaget i Norden | TalkPool vs. Evolution AB | TalkPool vs. Stillfront 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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