Correlation Between Attendo AB and Karnov Group
Can any of the company-specific risk be diversified away by investing in both Attendo AB and Karnov Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Attendo AB and Karnov Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Attendo AB and Karnov Group AB, you can compare the effects of market volatilities on Attendo AB and Karnov Group 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 Attendo AB with a short position of Karnov Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attendo AB and Karnov Group.
Diversification Opportunities for Attendo AB and Karnov Group
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Attendo and Karnov is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Attendo AB and Karnov Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karnov Group AB and Attendo AB 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 Attendo AB are associated (or correlated) with Karnov Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karnov Group AB has no effect on the direction of Attendo AB i.e., Attendo AB and Karnov Group go up and down completely randomly.
Pair Corralation between Attendo AB and Karnov Group
Assuming the 90 days trading horizon Attendo AB is expected to generate 0.61 times more return on investment than Karnov Group. However, Attendo AB is 1.64 times less risky than Karnov Group. It trades about 0.13 of its potential returns per unit of risk. Karnov Group AB is currently generating about 0.07 per unit of risk. If you would invest 4,740 in Attendo AB on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Attendo AB or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Attendo AB vs. Karnov Group AB
Performance |
| Timeline |
| Attendo AB |
| Karnov Group AB |
Attendo AB and Karnov Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Attendo AB and Karnov Group
The main advantage of trading using opposite Attendo AB and Karnov Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attendo AB position performs unexpectedly, Karnov Group 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 Karnov Group will offset losses from the drop in Karnov Group's long position.| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava AB |
| Karnov Group vs. Attendo AB | Karnov Group vs. Ambea AB | Karnov Group vs. Inwido AB | Karnov Group vs. AcadeMedia 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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