Correlation Between BillerudKorsnas and Arctic Gold
Can any of the company-specific risk be diversified away by investing in both BillerudKorsnas and Arctic Gold 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 BillerudKorsnas and Arctic Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BillerudKorsnas AB and Arctic Gold Publ, you can compare the effects of market volatilities on BillerudKorsnas and Arctic Gold 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 BillerudKorsnas with a short position of Arctic Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BillerudKorsnas and Arctic Gold.
Diversification Opportunities for BillerudKorsnas and Arctic Gold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BillerudKorsnas and Arctic is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BillerudKorsnas AB and Arctic Gold Publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Gold Publ and BillerudKorsnas 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 BillerudKorsnas AB are associated (or correlated) with Arctic Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Gold Publ has no effect on the direction of BillerudKorsnas i.e., BillerudKorsnas and Arctic Gold go up and down completely randomly.
Pair Corralation between BillerudKorsnas and Arctic Gold
Assuming the 90 days trading horizon BillerudKorsnas is expected to generate 26.71 times less return on investment than Arctic Gold. But when comparing it to its historical volatility, BillerudKorsnas AB is 3.56 times less risky than Arctic Gold. It trades about 0.0 of its potential returns per unit of risk. Arctic Gold Publ is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Arctic Gold Publ on September 12, 2024 and sell it today you would lose (3.00) from holding Arctic Gold Publ or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BillerudKorsnas AB vs. Arctic Gold Publ
Performance |
| Timeline |
| BillerudKorsnas AB |
| Arctic Gold Publ |
BillerudKorsnas and Arctic Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BillerudKorsnas and Arctic Gold
The main advantage of trading using opposite BillerudKorsnas and Arctic Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BillerudKorsnas position performs unexpectedly, Arctic Gold 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 Arctic Gold will offset losses from the drop in Arctic Gold's long position.| BillerudKorsnas vs. SSAB AB | BillerudKorsnas vs. Svenska Cellulosa Aktiebolaget | BillerudKorsnas vs. Axfood AB | BillerudKorsnas vs. Proact IT Group |
| Arctic Gold vs. BillerudKorsnas AB | Arctic Gold vs. SSAB AB | Arctic Gold vs. Svenska Cellulosa Aktiebolaget | Arctic Gold vs. Axfood 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |