Correlation Between AB Electrolux and IZafe Group
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By analyzing existing cross correlation between AB Electrolux and iZafe Group AB, you can compare the effects of market volatilities on AB Electrolux and IZafe Group 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 AB Electrolux with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB Electrolux and IZafe Group.
Diversification Opportunities for AB Electrolux and IZafe Group
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ELUX-B and IZafe is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AB Electrolux and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and AB Electrolux 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 AB Electrolux are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of AB Electrolux i.e., AB Electrolux and IZafe Group go up and down completely randomly.
Pair Corralation between AB Electrolux and IZafe Group
Assuming the 90 days trading horizon AB Electrolux is expected to generate 0.47 times more return on investment than IZafe Group. However, AB Electrolux is 2.13 times less risky than IZafe Group. It trades about 0.17 of its potential returns per unit of risk. iZafe Group AB is currently generating about 0.07 per unit of risk. If you would invest 8,316 in AB Electrolux on September 24, 2024 and sell it today you would earn a total of 674.00 from holding AB Electrolux or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB Electrolux vs. iZafe Group AB
Performance |
| Timeline |
| AB Electrolux |
| iZafe Group AB |
AB Electrolux and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB Electrolux and IZafe Group
The main advantage of trading using opposite AB Electrolux and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB Electrolux position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| AB Electrolux vs. AB SKF | AB Electrolux vs. Tele2 AB | AB Electrolux vs. Sandvik AB | AB Electrolux vs. Skanska AB |
| IZafe Group vs. Skanska AB | IZafe Group vs. AB SKF | IZafe Group vs. Tele2 AB | IZafe Group vs. AB Electrolux |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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