Correlation Between Flexion Mobile and Avanza Bank
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Avanza Bank 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 Flexion Mobile and Avanza Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexion Mobile PLC and Avanza Bank Holding, you can compare the effects of market volatilities on Flexion Mobile and Avanza Bank 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 Flexion Mobile with a short position of Avanza Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Avanza Bank.
Diversification Opportunities for Flexion Mobile and Avanza Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Flexion and Avanza is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Avanza Bank Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanza Bank Holding and Flexion Mobile 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 Flexion Mobile PLC are associated (or correlated) with Avanza Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanza Bank Holding has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Avanza Bank go up and down completely randomly.
Pair Corralation between Flexion Mobile and Avanza Bank
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Avanza Bank. In addition to that, Flexion Mobile is 2.48 times more volatile than Avanza Bank Holding. It trades about -0.08 of its total potential returns per unit of risk. Avanza Bank Holding is currently generating about -0.11 per unit of volatility. If you would invest 22,610 in Avanza Bank Holding on August 29, 2024 and sell it today you would lose (660.00) from holding Avanza Bank Holding or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Avanza Bank Holding
Performance |
| Timeline |
| Flexion Mobile PLC |
| Avanza Bank Holding |
Flexion Mobile and Avanza Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Avanza Bank
The main advantage of trading using opposite Flexion Mobile and Avanza Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Avanza Bank 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 Avanza Bank will offset losses from the drop in Avanza Bank's long position.| Flexion Mobile vs. JLT Mobile Computers | Flexion Mobile vs. Catena Media plc | Flexion Mobile vs. Nordea Bank Abp | Flexion Mobile vs. AcadeMedia AB |
| Avanza Bank vs. Axfood AB | Avanza Bank vs. Samhllsbyggnadsbolaget i Norden | Avanza Bank vs. Castellum AB | Avanza Bank vs. Investor AB ser |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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