Correlation Between Arcticzymes Technologies and HAV Group
Can any of the company-specific risk be diversified away by investing in both Arcticzymes Technologies and HAV 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 Arcticzymes Technologies and HAV Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcticzymes Technologies ASA and HAV Group ASA, you can compare the effects of market volatilities on Arcticzymes Technologies and HAV 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 Arcticzymes Technologies with a short position of HAV Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcticzymes Technologies and HAV Group.
Diversification Opportunities for Arcticzymes Technologies and HAV Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arcticzymes and HAV is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Arcticzymes Technologies ASA and HAV Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAV Group ASA and Arcticzymes Technologies 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 Arcticzymes Technologies ASA are associated (or correlated) with HAV Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAV Group ASA has no effect on the direction of Arcticzymes Technologies i.e., Arcticzymes Technologies and HAV Group go up and down completely randomly.
Pair Corralation between Arcticzymes Technologies and HAV Group
Assuming the 90 days trading horizon Arcticzymes Technologies ASA is expected to under-perform the HAV Group. In addition to that, Arcticzymes Technologies is 1.27 times more volatile than HAV Group ASA. It trades about -0.16 of its total potential returns per unit of risk. HAV Group ASA is currently generating about -0.17 per unit of volatility. If you would invest 882.00 in HAV Group ASA on August 29, 2024 and sell it today you would lose (178.00) from holding HAV Group ASA or give up 20.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcticzymes Technologies ASA vs. HAV Group ASA
Performance |
| Timeline |
| Arcticzymes Technologies |
| HAV Group ASA |
Arcticzymes Technologies and HAV Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcticzymes Technologies and HAV Group
The main advantage of trading using opposite Arcticzymes Technologies and HAV Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcticzymes Technologies position performs unexpectedly, HAV 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 HAV Group will offset losses from the drop in HAV Group's long position.| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron ASA |
| HAV Group vs. Bien Sparebank ASA | HAV Group vs. Polaris Media | HAV Group vs. Romerike Sparebank | HAV Group vs. Skue Sparebank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |