Correlation Between Hagar Hf and Slandsbanki
Can any of the company-specific risk be diversified away by investing in both Hagar Hf and Slandsbanki 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 Hagar Hf and Slandsbanki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hagar hf and slandsbanki hf, you can compare the effects of market volatilities on Hagar Hf and Slandsbanki 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 Hagar Hf with a short position of Slandsbanki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hagar Hf and Slandsbanki.
Diversification Opportunities for Hagar Hf and Slandsbanki
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hagar and Slandsbanki is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hagar hf and slandsbanki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on slandsbanki hf and Hagar Hf 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 Hagar hf are associated (or correlated) with Slandsbanki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of slandsbanki hf has no effect on the direction of Hagar Hf i.e., Hagar Hf and Slandsbanki go up and down completely randomly.
Pair Corralation between Hagar Hf and Slandsbanki
Assuming the 90 days trading horizon Hagar Hf is expected to generate 2.33 times less return on investment than Slandsbanki. In addition to that, Hagar Hf is 1.0 times more volatile than slandsbanki hf. It trades about 0.07 of its total potential returns per unit of risk. slandsbanki hf is currently generating about 0.17 per unit of volatility. If you would invest 12,100 in slandsbanki hf on August 25, 2024 and sell it today you would earn a total of 475.00 from holding slandsbanki hf or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hagar hf vs. slandsbanki hf
Performance |
| Timeline |
| Hagar hf |
| slandsbanki hf |
Hagar Hf and Slandsbanki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hagar Hf and Slandsbanki
The main advantage of trading using opposite Hagar Hf and Slandsbanki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hagar Hf position performs unexpectedly, Slandsbanki 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 Slandsbanki will offset losses from the drop in Slandsbanki's long position.| Hagar Hf vs. Icelandair Group hf | Hagar Hf vs. Arion banki hf | Hagar Hf vs. Festi hf | Hagar Hf vs. Marel hf |
| Slandsbanki vs. Alvotech | Slandsbanki vs. Festi hf | Slandsbanki vs. Hagar hf | Slandsbanki vs. Arion banki 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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