Correlation Between Dala Energi and Arion Banki
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dala Energi AB and Arion banki hf, you can compare the effects of market volatilities on Dala Energi 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 Dala Energi with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dala Energi and Arion Banki.
Diversification Opportunities for Dala Energi and Arion Banki
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dala and Arion is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dala Energi 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 Dala Energi 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 Dala Energi 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 Dala Energi i.e., Dala Energi and Arion Banki go up and down completely randomly.
Pair Corralation between Dala Energi and Arion Banki
Assuming the 90 days horizon Dala Energi is expected to generate 1.27 times less return on investment than Arion Banki. But when comparing it to its historical volatility, Dala Energi AB is 2.49 times less risky than Arion Banki. It trades about 0.23 of its potential returns per unit of risk. Arion banki hf is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,335 in Arion banki hf on November 2, 2024 and sell it today you would earn a total of 40.00 from holding Arion banki hf or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dala Energi AB vs. Arion banki hf
Performance |
| Timeline |
| Dala Energi AB |
| Arion banki hf |
Dala Energi and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dala Energi and Arion Banki
The main advantage of trading using opposite Dala Energi and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dala Energi 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.| Dala Energi vs. FM Mattsson Mora | Dala Energi vs. NCAB Group | Dala Energi vs. Nordic Waterproofing Holding | Dala Energi vs. MilDef Group AB |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |