Correlation Between Bravida Holding and Arion Banki
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bravida Holding AB and Arion banki hf, you can compare the effects of market volatilities on Bravida Holding and Arion Banki 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 Bravida Holding with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravida Holding and Arion Banki.
Diversification Opportunities for Bravida Holding and Arion Banki
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bravida and Arion is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bravida Holding AB and Arion banki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arion banki hf and Bravida Holding 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 Bravida Holding AB are associated (or correlated) with Arion Banki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arion banki hf has no effect on the direction of Bravida Holding i.e., Bravida Holding and Arion Banki go up and down completely randomly.
Pair Corralation between Bravida Holding and Arion Banki
Assuming the 90 days trading horizon Bravida Holding AB is expected to generate 0.9 times more return on investment than Arion Banki. However, Bravida Holding AB is 1.11 times less risky than Arion Banki. It trades about 0.41 of its potential returns per unit of risk. Arion banki hf is currently generating about 0.06 per unit of risk. If you would invest 8,035 in Bravida Holding AB on November 4, 2024 and sell it today you would earn a total of 830.00 from holding Bravida Holding AB or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bravida Holding AB vs. Arion banki hf
Performance |
| Timeline |
| Bravida Holding AB |
| Arion banki hf |
Bravida Holding and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bravida Holding and Arion Banki
The main advantage of trading using opposite Bravida Holding and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravida Holding position performs unexpectedly, Arion Banki 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 Arion Banki will offset losses from the drop in Arion Banki's long position.| Bravida Holding vs. Nolato AB | Bravida Holding vs. Indutrade AB | Bravida Holding vs. HEXPOL AB | Bravida Holding vs. Addtech AB |
| Arion Banki vs. Atrium Ljungberg AB | Arion Banki vs. Arjo AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |