Correlation Between Clean Motion and Arion Banki
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By analyzing existing cross correlation between Clean Motion AB and Arion banki hf, you can compare the effects of market volatilities on Clean Motion 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 Clean Motion with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Motion and Arion Banki.
Diversification Opportunities for Clean Motion and Arion Banki
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clean and Arion is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Clean Motion 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 Clean Motion 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 Clean Motion 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 Clean Motion i.e., Clean Motion and Arion Banki go up and down completely randomly.
Pair Corralation between Clean Motion and Arion Banki
Assuming the 90 days trading horizon Clean Motion AB is expected to under-perform the Arion Banki. In addition to that, Clean Motion is 3.34 times more volatile than Arion banki hf. It trades about -0.38 of its total potential returns per unit of risk. Arion banki hf is currently generating about 0.08 per unit of volatility. If you would invest 1,215 in Arion banki hf on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Arion banki hf or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Motion AB vs. Arion banki hf
Performance |
| Timeline |
| Clean Motion AB |
| Arion banki hf |
Clean Motion and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Motion and Arion Banki
The main advantage of trading using opposite Clean Motion and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Motion 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.| Clean Motion vs. Traton SE | Clean Motion vs. KABE Group AB | Clean Motion vs. IAR Systems Group | Clean Motion vs. Mekonomen 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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