Correlation Between Avanza Bank and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both Avanza Bank and Flexion Mobile 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 Avanza Bank and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avanza Bank Holding and Flexion Mobile PLC, you can compare the effects of market volatilities on Avanza Bank and Flexion Mobile 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 Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and Flexion Mobile.
Diversification Opportunities for Avanza Bank and Flexion Mobile
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Avanza and Flexion is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Avanza Bank Holding and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile 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 Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of Avanza Bank i.e., Avanza Bank and Flexion Mobile go up and down completely randomly.
Pair Corralation between Avanza Bank and Flexion Mobile
Assuming the 90 days trading horizon Avanza Bank Holding is expected to generate 0.71 times more return on investment than Flexion Mobile. However, Avanza Bank Holding is 1.41 times less risky than Flexion Mobile. It trades about -0.1 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.08 per unit of risk. If you would invest 27,400 in Avanza Bank Holding on August 29, 2024 and sell it today you would lose (5,450) from holding Avanza Bank Holding or give up 19.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avanza Bank Holding vs. Flexion Mobile PLC
Performance |
| Timeline |
| Avanza Bank Holding |
| Flexion Mobile PLC |
Avanza Bank and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avanza Bank and Flexion Mobile
The main advantage of trading using opposite Avanza Bank and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avanza Bank position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile'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 |
| Flexion Mobile vs. JLT Mobile Computers | Flexion Mobile vs. Catena Media plc | Flexion Mobile vs. Nordea Bank Abp | Flexion Mobile 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 CEOs Directory module to screen CEOs from public companies around the world.
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