Correlation Between Embracer Group and Atrium Ljungberg
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By analyzing existing cross correlation between Embracer Group AB and Atrium Ljungberg AB, you can compare the effects of market volatilities on Embracer Group and Atrium Ljungberg 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 Embracer Group with a short position of Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Atrium Ljungberg.
Diversification Opportunities for Embracer Group and Atrium Ljungberg
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embracer and Atrium is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg and Embracer Group 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 Embracer Group AB are associated (or correlated) with Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of Embracer Group i.e., Embracer Group and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between Embracer Group and Atrium Ljungberg
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 2.11 times more return on investment than Atrium Ljungberg. However, Embracer Group is 2.11 times more volatile than Atrium Ljungberg AB. It trades about 0.06 of its potential returns per unit of risk. Atrium Ljungberg AB is currently generating about -0.31 per unit of risk. If you would invest 2,698 in Embracer Group AB on September 3, 2024 and sell it today you would earn a total of 179.00 from holding Embracer Group AB or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embracer Group AB vs. Atrium Ljungberg AB
Performance |
| Timeline |
| Embracer Group AB |
| Atrium Ljungberg |
Embracer Group and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Atrium Ljungberg
The main advantage of trading using opposite Embracer Group and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group AB |
| Atrium Ljungberg vs. Sinch AB | Atrium Ljungberg vs. Embracer Group AB | Atrium Ljungberg vs. Investor AB ser | Atrium Ljungberg vs. Castellum 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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