Correlation Between Iceland Seafood and Slandsbanki
Can any of the company-specific risk be diversified away by investing in both Iceland Seafood 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 Iceland Seafood and Slandsbanki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iceland Seafood International and slandsbanki hf, you can compare the effects of market volatilities on Iceland Seafood 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 Iceland Seafood with a short position of Slandsbanki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iceland Seafood and Slandsbanki.
Diversification Opportunities for Iceland Seafood and Slandsbanki
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iceland and Slandsbanki is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Iceland Seafood International and slandsbanki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on slandsbanki hf and Iceland Seafood 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 Iceland Seafood International 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 Iceland Seafood i.e., Iceland Seafood and Slandsbanki go up and down completely randomly.
Pair Corralation between Iceland Seafood and Slandsbanki
Assuming the 90 days trading horizon Iceland Seafood International is expected to under-perform the Slandsbanki. In addition to that, Iceland Seafood is 1.01 times more volatile than slandsbanki hf. It trades about -0.06 of its total potential returns per unit of risk. slandsbanki hf is currently generating about 0.01 per unit of volatility. If you would invest 12,000 in slandsbanki hf on August 29, 2024 and sell it today you would earn a total of 500.00 from holding slandsbanki hf or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iceland Seafood International vs. slandsbanki hf
Performance |
| Timeline |
| Iceland Seafood Inte |
| slandsbanki hf |
Iceland Seafood and Slandsbanki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iceland Seafood and Slandsbanki
The main advantage of trading using opposite Iceland Seafood and Slandsbanki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iceland Seafood 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.| Iceland Seafood vs. Alvotech | Iceland Seafood vs. Festi hf | Iceland Seafood vs. slandsbanki hf | Iceland Seafood vs. Hagar hf |
| Slandsbanki vs. Icelandair Group hf | Slandsbanki vs. Arion banki hf | Slandsbanki vs. Kvika banki hf | Slandsbanki vs. Marel 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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