Correlation Between IZafe Group and Kollect On
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By analyzing existing cross correlation between iZafe Group AB and Kollect on Demand, you can compare the effects of market volatilities on IZafe Group and Kollect On 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 Kollect On. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZafe Group and Kollect On.
Diversification Opportunities for IZafe Group and Kollect On
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IZafe and Kollect is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding iZafe Group AB and Kollect on Demand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kollect on Demand 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 Kollect On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kollect on Demand has no effect on the direction of IZafe Group i.e., IZafe Group and Kollect On go up and down completely randomly.
Pair Corralation between IZafe Group and Kollect On
Assuming the 90 days trading horizon iZafe Group AB is expected to generate 2.41 times more return on investment than Kollect On. However, IZafe Group is 2.41 times more volatile than Kollect on Demand. It trades about 0.07 of its potential returns per unit of risk. Kollect on Demand is currently generating about 0.14 per unit of risk. If you would invest 20.00 in iZafe Group AB on September 24, 2024 and sell it today you would earn a total of 1.00 from holding iZafe Group AB or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iZafe Group AB vs. Kollect on Demand
Performance |
| Timeline |
| iZafe Group AB |
| Kollect on Demand |
IZafe Group and Kollect On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZafe Group and Kollect On
The main advantage of trading using opposite IZafe Group and Kollect On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZafe Group position performs unexpectedly, Kollect On 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 Kollect On will offset losses from the drop in Kollect On's long position.| IZafe Group vs. Skanska AB | IZafe Group vs. AB SKF | IZafe Group vs. Tele2 AB | IZafe Group vs. AB Electrolux |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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