Correlation Between Catena AB and Arion Banki
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By analyzing existing cross correlation between Catena AB and Arion banki hf, you can compare the effects of market volatilities on Catena AB 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 Catena AB with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and Arion Banki.
Diversification Opportunities for Catena AB and Arion Banki
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catena and Arion is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Catena 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 Catena AB 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 Catena 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 Catena AB i.e., Catena AB and Arion Banki go up and down completely randomly.
Pair Corralation between Catena AB and Arion Banki
Assuming the 90 days trading horizon Catena AB is expected to generate 1.21 times more return on investment than Arion Banki. However, Catena AB is 1.21 times more volatile than Arion banki hf. It trades about 0.1 of its potential returns per unit of risk. Arion banki hf is currently generating about 0.11 per unit of risk. If you would invest 47,750 in Catena AB on November 2, 2024 and sell it today you would earn a total of 1,500 from holding Catena AB or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Catena AB vs. Arion banki hf
Performance |
| Timeline |
| Catena AB |
| Arion banki hf |
Catena AB and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena AB and Arion Banki
The main advantage of trading using opposite Catena AB and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB 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.| Catena AB vs. Fastighets AB Balder | Catena AB vs. Fabege AB | Catena AB vs. Wihlborgs Fastigheter AB | Catena AB vs. AB Sagax |
| Arion Banki vs. Swedbank AB | Arion Banki vs. Svenska Handelsbanken AB | Arion Banki vs. H M Hennes | Arion Banki vs. Telefonaktiebolaget LM Ericsson |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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