Correlation Between Avanza Bank and Beowulf Mining
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By analyzing existing cross correlation between Avanza Bank Holding and Beowulf Mining PLC, you can compare the effects of market volatilities on Avanza Bank and Beowulf Mining 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 Avanza Bank with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and Beowulf Mining.
Diversification Opportunities for Avanza Bank and Beowulf Mining
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avanza and Beowulf is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Avanza Bank Holding and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC and Avanza Bank 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 Avanza Bank Holding are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of Avanza Bank i.e., Avanza Bank and Beowulf Mining go up and down completely randomly.
Pair Corralation between Avanza Bank and Beowulf Mining
Assuming the 90 days trading horizon Avanza Bank Holding is expected to generate 0.27 times more return on investment than Beowulf Mining. However, Avanza Bank Holding is 3.77 times less risky than Beowulf Mining. It trades about -0.11 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about -0.19 per unit of risk. If you would invest 22,610 in Avanza Bank Holding on August 29, 2024 and sell it today you would lose (660.00) from holding Avanza Bank Holding or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanza Bank Holding vs. Beowulf Mining PLC
Performance |
| Timeline |
| Avanza Bank Holding |
| Beowulf Mining PLC |
Avanza Bank and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanza Bank and Beowulf Mining
The main advantage of trading using opposite Avanza Bank and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanza Bank position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Avanza Bank vs. Axfood AB | Avanza Bank vs. Samhllsbyggnadsbolaget i Norden | Avanza Bank vs. Castellum AB | Avanza Bank vs. Investor AB ser |
| Beowulf Mining vs. AstraZeneca PLC | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Atlas Copco 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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