Correlation Between COOR Service and Acuvi AB
Can any of the company-specific risk be diversified away by investing in both COOR Service and Acuvi AB 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 COOR Service and Acuvi AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COOR Service Management and Acuvi AB, you can compare the effects of market volatilities on COOR Service and Acuvi AB 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 COOR Service with a short position of Acuvi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of COOR Service and Acuvi AB.
Diversification Opportunities for COOR Service and Acuvi AB
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COOR and Acuvi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding COOR Service Management and Acuvi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acuvi AB and COOR Service 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 COOR Service Management are associated (or correlated) with Acuvi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acuvi AB has no effect on the direction of COOR Service i.e., COOR Service and Acuvi AB go up and down completely randomly.
Pair Corralation between COOR Service and Acuvi AB
Assuming the 90 days trading horizon COOR Service Management is expected to under-perform the Acuvi AB. But the stock apears to be less risky and, when comparing its historical volatility, COOR Service Management is 2.08 times less risky than Acuvi AB. The stock trades about -0.26 of its potential returns per unit of risk. The Acuvi AB is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,720 in Acuvi AB on September 1, 2024 and sell it today you would lose (140.00) from holding Acuvi AB or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
COOR Service Management vs. Acuvi AB
Performance |
| Timeline |
| COOR Service Management |
| Acuvi AB |
COOR Service and Acuvi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COOR Service and Acuvi AB
The main advantage of trading using opposite COOR Service and Acuvi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COOR Service position performs unexpectedly, Acuvi AB 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 Acuvi AB will offset losses from the drop in Acuvi AB's long position.| COOR Service vs. Samhllsbyggnadsbolaget i Norden | COOR Service vs. Sinch AB | COOR Service vs. Embracer Group AB | COOR Service vs. Evolution AB |
| Acuvi AB vs. eEducation Albert AB | Acuvi AB vs. Viaplay Group AB | Acuvi AB vs. COOR Service Management | Acuvi AB vs. Lohilo Foods 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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