Correlation Between ISFELAG HF and Slandsbanki
Can any of the company-specific risk be diversified away by investing in both ISFELAG 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 ISFELAG HF and Slandsbanki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISFELAG HF and slandsbanki hf, you can compare the effects of market volatilities on ISFELAG 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 ISFELAG HF with a short position of Slandsbanki. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISFELAG HF and Slandsbanki.
Diversification Opportunities for ISFELAG HF and Slandsbanki
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ISFELAG and Slandsbanki is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ISFELAG HF and slandsbanki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on slandsbanki hf and ISFELAG 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 ISFELAG 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 ISFELAG HF i.e., ISFELAG HF and Slandsbanki go up and down completely randomly.
Pair Corralation between ISFELAG HF and Slandsbanki
Assuming the 90 days trading horizon ISFELAG HF is expected to generate 0.86 times more return on investment than Slandsbanki. However, ISFELAG HF is 1.17 times less risky than Slandsbanki. It trades about 0.04 of its potential returns per unit of risk. slandsbanki hf is currently generating about -0.09 per unit of risk. If you would invest 15,200 in ISFELAG HF on August 28, 2024 and sell it today you would earn a total of 80.00 from holding ISFELAG HF or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ISFELAG HF vs. slandsbanki hf
Performance |
| Timeline |
| ISFELAG HF |
| slandsbanki hf |
ISFELAG HF and Slandsbanki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISFELAG HF and Slandsbanki
The main advantage of trading using opposite ISFELAG HF and Slandsbanki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISFELAG 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.| ISFELAG HF vs. Alvotech | ISFELAG HF vs. Arion banki hf | ISFELAG HF vs. Icelandair Group hf | ISFELAG HF vs. slandsbanki 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |