Correlation Between Arion Banki and ICEX Main
Specify exactly 2 symbols:
By analyzing existing cross correlation between Arion banki hf and ICEX Main, you can compare the effects of market volatilities on Arion Banki and ICEX Main 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 ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and ICEX Main.
Diversification Opportunities for Arion Banki and ICEX Main
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arion and ICEX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main 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 ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of Arion Banki i.e., Arion Banki and ICEX Main go up and down completely randomly.
Pair Corralation between Arion Banki and ICEX Main
Assuming the 90 days trading horizon Arion banki hf is expected to generate 1.21 times more return on investment than ICEX Main. However, Arion Banki is 1.21 times more volatile than ICEX Main. It trades about 0.03 of its potential returns per unit of risk. ICEX Main is currently generating about 0.01 per unit of risk. If you would invest 14,002 in Arion banki hf on September 13, 2024 and sell it today you would earn a total of 1,948 from holding Arion banki hf or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arion banki hf vs. ICEX Main
Performance |
| Timeline |
Arion Banki and ICEX Main Volatility Contrast
Predicted Return Density |
| Returns |
Arion banki hf
Pair trading matchups for Arion Banki
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with Arion Banki and ICEX Main
The main advantage of trading using opposite Arion Banki and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.| Arion Banki vs. Alvotech | Arion Banki vs. Festi hf | Arion Banki vs. Icelandair Group hf | Arion Banki vs. Sn hf |
| ICEX Main vs. Alvotech | ICEX Main vs. Icelandair Group hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Arion banki hf |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |