Correlation Between Arcticzymes Technologies and Ice Fish
Can any of the company-specific risk be diversified away by investing in both Arcticzymes Technologies and Ice Fish 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 Ice Fish 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 Ice Fish Farm, you can compare the effects of market volatilities on Arcticzymes Technologies and Ice Fish 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 Ice Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcticzymes Technologies and Ice Fish.
Diversification Opportunities for Arcticzymes Technologies and Ice Fish
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arcticzymes and Ice is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Arcticzymes Technologies ASA and Ice Fish Farm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Fish Farm 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 Ice Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Fish Farm has no effect on the direction of Arcticzymes Technologies i.e., Arcticzymes Technologies and Ice Fish go up and down completely randomly.
Pair Corralation between Arcticzymes Technologies and Ice Fish
Assuming the 90 days trading horizon Arcticzymes Technologies ASA is expected to under-perform the Ice Fish. But the stock apears to be less risky and, when comparing its historical volatility, Arcticzymes Technologies ASA is 1.53 times less risky than Ice Fish. The stock trades about -0.16 of its potential returns per unit of risk. The Ice Fish Farm is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,420 in Ice Fish Farm on August 29, 2024 and sell it today you would earn a total of 360.00 from holding Ice Fish Farm or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcticzymes Technologies ASA vs. Ice Fish Farm
Performance |
| Timeline |
| Arcticzymes Technologies |
| Ice Fish Farm |
Arcticzymes Technologies and Ice Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcticzymes Technologies and Ice Fish
The main advantage of trading using opposite Arcticzymes Technologies and Ice Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcticzymes Technologies position performs unexpectedly, Ice Fish 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 Ice Fish will offset losses from the drop in Ice Fish's long position.| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron ASA |
| Ice Fish vs. Masoval AS | Ice Fish vs. Arctic Fish Holding | Ice Fish vs. Elkem ASA | Ice Fish vs. DNB NOR KAPFORV |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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