Correlation Between Slandsbanki and Sn Hf
Can any of the company-specific risk be diversified away by investing in both Slandsbanki and Sn Hf 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 Slandsbanki and Sn Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between slandsbanki hf and Sn hf, you can compare the effects of market volatilities on Slandsbanki and Sn Hf 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 Slandsbanki with a short position of Sn Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slandsbanki and Sn Hf.
Diversification Opportunities for Slandsbanki and Sn Hf
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Slandsbanki and SYN is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding slandsbanki hf and Sn hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sn hf and Slandsbanki 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 slandsbanki hf are associated (or correlated) with Sn Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sn hf has no effect on the direction of Slandsbanki i.e., Slandsbanki and Sn Hf go up and down completely randomly.
Pair Corralation between Slandsbanki and Sn Hf
Assuming the 90 days trading horizon slandsbanki hf is expected to under-perform the Sn Hf. But the stock apears to be less risky and, when comparing its historical volatility, slandsbanki hf is 2.38 times less risky than Sn Hf. The stock trades about -0.07 of its potential returns per unit of risk. The Sn hf is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,020 in Sn hf on September 1, 2024 and sell it today you would earn a total of 280.00 from holding Sn hf or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
slandsbanki hf vs. Sn hf
Performance |
| Timeline |
| slandsbanki hf |
| Sn hf |
Slandsbanki and Sn Hf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slandsbanki and Sn Hf
The main advantage of trading using opposite Slandsbanki and Sn Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slandsbanki position performs unexpectedly, Sn Hf 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 Sn Hf will offset losses from the drop in Sn Hf's long position.| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |