Correlation Between Arion Banki and Tele2 AB
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By analyzing existing cross correlation between Arion banki hf and Tele2 AB, you can compare the effects of market volatilities on Arion Banki and Tele2 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 Tele2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Tele2 AB.
Diversification Opportunities for Arion Banki and Tele2 AB
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Arion and Tele2 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Tele2 AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tele2 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 Tele2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tele2 AB has no effect on the direction of Arion Banki i.e., Arion Banki and Tele2 AB go up and down completely randomly.
Pair Corralation between Arion Banki and Tele2 AB
Assuming the 90 days trading horizon Arion Banki is expected to generate 1.25 times less return on investment than Tele2 AB. In addition to that, Arion Banki is 1.09 times more volatile than Tele2 AB. It trades about 0.08 of its total potential returns per unit of risk. Tele2 AB is currently generating about 0.11 per unit of volatility. If you would invest 11,300 in Tele2 AB on November 27, 2024 and sell it today you would earn a total of 1,500 from holding Tele2 AB or generate 13.27% 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. Tele2 AB
Performance |
| Timeline |
| Arion banki hf |
| Tele2 AB |
Arion Banki and Tele2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Tele2 AB
The main advantage of trading using opposite Arion Banki and Tele2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Tele2 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 Tele2 AB will offset losses from the drop in Tele2 AB'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 |
| Tele2 AB vs. Tele2 AB | Tele2 AB vs. AB SKF | Tele2 AB vs. Svenska Cellulosa Aktiebolaget | Tele2 AB vs. Holmen 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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