Correlation Between Clas Ohlson and Online Brands
Can any of the company-specific risk be diversified away by investing in both Clas Ohlson and Online Brands 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 Clas Ohlson and Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clas Ohlson AB and Online Brands Nordic, you can compare the effects of market volatilities on Clas Ohlson and Online Brands 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 Clas Ohlson with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clas Ohlson and Online Brands.
Diversification Opportunities for Clas Ohlson and Online Brands
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clas and Online is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Clas Ohlson AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic and Clas Ohlson 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 Clas Ohlson AB are associated (or correlated) with Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of Clas Ohlson i.e., Clas Ohlson and Online Brands go up and down completely randomly.
Pair Corralation between Clas Ohlson and Online Brands
Assuming the 90 days trading horizon Clas Ohlson AB is expected to generate 0.53 times more return on investment than Online Brands. However, Clas Ohlson AB is 1.89 times less risky than Online Brands. It trades about 0.1 of its potential returns per unit of risk. Online Brands Nordic is currently generating about -0.02 per unit of risk. If you would invest 7,134 in Clas Ohlson AB on August 31, 2024 and sell it today you would earn a total of 12,566 from holding Clas Ohlson AB or generate 176.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Clas Ohlson AB vs. Online Brands Nordic
Performance |
| Timeline |
| Clas Ohlson AB |
| Online Brands Nordic |
Clas Ohlson and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clas Ohlson and Online Brands
The main advantage of trading using opposite Clas Ohlson and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clas Ohlson position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| Clas Ohlson vs. Tele2 AB | Clas Ohlson vs. Axfood AB | Clas Ohlson vs. Telia Company AB | Clas Ohlson vs. Byggmax Group AB |
| Online Brands vs. NetJobs Group AB | Online Brands vs. Mantex AB | Online Brands vs. Doxa AB | Online Brands vs. Clean Motion 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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