Correlation Between IZafe Group and Adventure Box
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By analyzing existing cross correlation between iZafe Group AB and Adventure Box Technology, you can compare the effects of market volatilities on IZafe Group and Adventure Box 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 IZafe Group with a short position of Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZafe Group and Adventure Box.
Diversification Opportunities for IZafe Group and Adventure Box
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IZafe and Adventure is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding iZafe Group AB and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and IZafe 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 iZafe Group AB are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of IZafe Group i.e., IZafe Group and Adventure Box go up and down completely randomly.
Pair Corralation between IZafe Group and Adventure Box
Assuming the 90 days trading horizon iZafe Group AB is expected to generate 0.66 times more return on investment than Adventure Box. However, iZafe Group AB is 1.52 times less risky than Adventure Box. It trades about 0.1 of its potential returns per unit of risk. Adventure Box Technology is currently generating about -0.19 per unit of risk. If you would invest 22.00 in iZafe Group AB on October 16, 2024 and sell it today you would earn a total of 1.00 from holding iZafe Group AB or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iZafe Group AB vs. Adventure Box Technology
Performance |
| Timeline |
| iZafe Group AB |
| Adventure Box Technology |
IZafe Group and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZafe Group and Adventure Box
The main advantage of trading using opposite IZafe Group and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZafe Group position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.| IZafe Group vs. Sprint Bioscience AB | IZafe Group vs. Acarix AS | IZafe Group vs. Annexin Pharmaceuticals AB |
| Adventure Box vs. Flexion Mobile PLC | Adventure Box vs. Stillfront Group AB | Adventure Box vs. iZafe Group AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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