Correlation Between Kancera AB and Arctic Gold
Can any of the company-specific risk be diversified away by investing in both Kancera AB and Arctic Gold 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 Kancera AB and Arctic Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kancera AB and Arctic Gold Publ, you can compare the effects of market volatilities on Kancera AB and Arctic Gold 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 Kancera AB with a short position of Arctic Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kancera AB and Arctic Gold.
Diversification Opportunities for Kancera AB and Arctic Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kancera and Arctic is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kancera AB and Arctic Gold Publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Gold Publ and Kancera AB 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 Kancera AB are associated (or correlated) with Arctic Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Gold Publ has no effect on the direction of Kancera AB i.e., Kancera AB and Arctic Gold go up and down completely randomly.
Pair Corralation between Kancera AB and Arctic Gold
Assuming the 90 days trading horizon Kancera AB is expected to under-perform the Arctic Gold. In addition to that, Kancera AB is 2.55 times more volatile than Arctic Gold Publ. It trades about -0.11 of its total potential returns per unit of risk. Arctic Gold Publ is currently generating about -0.11 per unit of volatility. If you would invest 34.00 in Arctic Gold Publ on August 26, 2024 and sell it today you would lose (5.00) from holding Arctic Gold Publ or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kancera AB vs. Arctic Gold Publ
Performance |
| Timeline |
| Kancera AB |
| Arctic Gold Publ |
Kancera AB and Arctic Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kancera AB and Arctic Gold
The main advantage of trading using opposite Kancera AB and Arctic Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kancera AB position performs unexpectedly, Arctic Gold 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 Arctic Gold will offset losses from the drop in Arctic Gold's long position.| Kancera AB vs. Bavarian Nordic | Kancera AB vs. BioPorto | Kancera AB vs. Zaptec AS | Kancera AB vs. cBrain AS |
| Arctic Gold vs. Svenska Aerogel Holding | Arctic Gold vs. Kancera AB | Arctic Gold vs. BIMobject AB | Arctic Gold vs. KABE 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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