Correlation Between Icelandair Group and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both Icelandair Group and Oculis Holding 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 Icelandair Group and Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icelandair Group hf and Oculis Holding AG, you can compare the effects of market volatilities on Icelandair Group and Oculis Holding 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 Icelandair Group with a short position of Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icelandair Group and Oculis Holding.
Diversification Opportunities for Icelandair Group and Oculis Holding
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icelandair and Oculis is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Icelandair Group hf and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG and Icelandair 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 Icelandair Group hf are associated (or correlated) with Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Icelandair Group i.e., Icelandair Group and Oculis Holding go up and down completely randomly.
Pair Corralation between Icelandair Group and Oculis Holding
Assuming the 90 days trading horizon Icelandair Group hf is expected to under-perform the Oculis Holding. In addition to that, Icelandair Group is 1.03 times more volatile than Oculis Holding AG. It trades about -0.02 of its total potential returns per unit of risk. Oculis Holding AG is currently generating about 0.08 per unit of volatility. If you would invest 169,000 in Oculis Holding AG on September 4, 2024 and sell it today you would earn a total of 44,000 from holding Oculis Holding AG or generate 26.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.31% |
| Values | Daily Returns |
Icelandair Group hf vs. Oculis Holding AG
Performance |
| Timeline |
| Icelandair Group |
| Oculis Holding AG |
Icelandair Group and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icelandair Group and Oculis Holding
The main advantage of trading using opposite Icelandair Group and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icelandair Group position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding's long position.| Icelandair Group vs. Icelandic Salmon AS | Icelandair Group vs. lgerin Egill Skallagrmsson | Icelandair Group vs. Fly Play hf | Icelandair Group vs. Oculis Holding AG |
| Oculis Holding vs. Iceland Seafood International | Oculis Holding vs. Icelandair Group hf | Oculis Holding vs. slandsbanki 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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