Correlation Between Karnov Group and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Karnov Group and AcadeMedia 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 Karnov Group and AcadeMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karnov Group AB and AcadeMedia AB, you can compare the effects of market volatilities on Karnov Group and AcadeMedia 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 Karnov Group with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karnov Group and AcadeMedia.
Diversification Opportunities for Karnov Group and AcadeMedia
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Karnov and AcadeMedia is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Karnov Group AB and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Karnov 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 Karnov Group AB are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Karnov Group i.e., Karnov Group and AcadeMedia go up and down completely randomly.
Pair Corralation between Karnov Group and AcadeMedia
Assuming the 90 days trading horizon Karnov Group AB is expected to under-perform the AcadeMedia. In addition to that, Karnov Group is 1.82 times more volatile than AcadeMedia AB. It trades about 0.0 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about 0.06 per unit of volatility. If you would invest 5,440 in AcadeMedia AB on September 1, 2024 and sell it today you would earn a total of 520.00 from holding AcadeMedia AB or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Karnov Group AB vs. AcadeMedia AB
Performance |
| Timeline |
| Karnov Group AB |
| AcadeMedia AB |
Karnov Group and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karnov Group and AcadeMedia
The main advantage of trading using opposite Karnov Group and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karnov Group position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| Karnov Group vs. Attendo AB | Karnov Group vs. Ambea AB | Karnov Group vs. Inwido AB | Karnov Group vs. AcadeMedia AB |
| AcadeMedia vs. Inwido AB | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB | AcadeMedia vs. Bravida Holding 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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