Correlation Between Greater Than and Acconeer
Can any of the company-specific risk be diversified away by investing in both Greater Than and Acconeer 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 Greater Than and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Than AB and Acconeer AB, you can compare the effects of market volatilities on Greater Than and Acconeer 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 Greater Than with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Than and Acconeer.
Diversification Opportunities for Greater Than and Acconeer
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greater and Acconeer is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Greater Than AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Greater Than 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 Greater Than AB are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Greater Than i.e., Greater Than and Acconeer go up and down completely randomly.
Pair Corralation between Greater Than and Acconeer
Assuming the 90 days trading horizon Greater Than AB is expected to generate 0.74 times more return on investment than Acconeer. However, Greater Than AB is 1.36 times less risky than Acconeer. It trades about -0.07 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.07 per unit of risk. If you would invest 9,080 in Greater Than AB on August 28, 2024 and sell it today you would lose (6,280) from holding Greater Than AB or give up 69.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Than AB vs. Acconeer AB
Performance |
| Timeline |
| Greater Than AB |
| Acconeer AB |
Greater Than and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Than and Acconeer
The main advantage of trading using opposite Greater Than and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Than position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer's long position.The idea behind Greater Than AB and Acconeer AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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