Correlation Between Eik Fasteignaflag and Hagar Hf
Can any of the company-specific risk be diversified away by investing in both Eik Fasteignaflag and Hagar Hf 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 Eik Fasteignaflag and Hagar Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eik fasteignaflag hf and Hagar hf, you can compare the effects of market volatilities on Eik Fasteignaflag and Hagar Hf 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 Eik Fasteignaflag with a short position of Hagar Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eik Fasteignaflag and Hagar Hf.
Diversification Opportunities for Eik Fasteignaflag and Hagar Hf
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eik and Hagar is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eik fasteignaflag hf and Hagar hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hagar hf and Eik Fasteignaflag 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 Eik fasteignaflag hf are associated (or correlated) with Hagar Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hagar hf has no effect on the direction of Eik Fasteignaflag i.e., Eik Fasteignaflag and Hagar Hf go up and down completely randomly.
Pair Corralation between Eik Fasteignaflag and Hagar Hf
Assuming the 90 days trading horizon Eik fasteignaflag hf is expected to under-perform the Hagar Hf. But the stock apears to be less risky and, when comparing its historical volatility, Eik fasteignaflag hf is 1.38 times less risky than Hagar Hf. The stock trades about -0.4 of its potential returns per unit of risk. The Hagar hf is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,325 in Hagar hf on August 27, 2024 and sell it today you would earn a total of 225.00 from holding Hagar hf or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eik fasteignaflag hf vs. Hagar hf
Performance |
| Timeline |
| Eik fasteignaflag |
| Hagar hf |
Eik Fasteignaflag and Hagar Hf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eik Fasteignaflag and Hagar Hf
The main advantage of trading using opposite Eik Fasteignaflag and Hagar Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eik Fasteignaflag position performs unexpectedly, Hagar Hf 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 Hagar Hf will offset losses from the drop in Hagar Hf's long position.| Eik Fasteignaflag vs. Hagar hf | Eik Fasteignaflag vs. Arion banki hf | Eik Fasteignaflag vs. Festi hf | Eik Fasteignaflag vs. Alvotech |
| Hagar Hf vs. Icelandair Group hf | Hagar Hf vs. Arion banki hf | Hagar Hf vs. Festi hf | Hagar Hf vs. Marel hf |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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