Correlation Between Arion Banki and Upsales Technology
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By analyzing existing cross correlation between Arion banki hf and Upsales Technology AB, you can compare the effects of market volatilities on Arion Banki and Upsales Technology 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 Upsales Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Upsales Technology.
Diversification Opportunities for Arion Banki and Upsales Technology
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arion and Upsales is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology 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 Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of Arion Banki i.e., Arion Banki and Upsales Technology go up and down completely randomly.
Pair Corralation between Arion Banki and Upsales Technology
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.61 times more return on investment than Upsales Technology. However, Arion banki hf is 1.65 times less risky than Upsales Technology. It trades about 0.15 of its potential returns per unit of risk. Upsales Technology AB is currently generating about 0.0 per unit of risk. If you would invest 1,180 in Arion banki hf on October 26, 2024 and sell it today you would earn a total of 170.00 from holding Arion banki hf or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. Upsales Technology AB
Performance |
| Timeline |
| Arion banki hf |
| Upsales Technology |
Arion Banki and Upsales Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arion Banki and Upsales Technology
The main advantage of trading using opposite Arion Banki and Upsales Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Upsales Technology 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 Upsales Technology will offset losses from the drop in Upsales Technology'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 |
| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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