Correlation Between Karnov Group and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Karnov Group and Attendo AB 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 Attendo AB 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 Attendo AB, you can compare the effects of market volatilities on Karnov Group and Attendo AB 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 Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karnov Group and Attendo AB.
Diversification Opportunities for Karnov Group and Attendo AB
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Karnov and Attendo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Karnov Group AB and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo 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 Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Karnov Group i.e., Karnov Group and Attendo AB go up and down completely randomly.
Pair Corralation between Karnov Group and Attendo AB
Assuming the 90 days trading horizon Karnov Group AB is expected to under-perform the Attendo AB. In addition to that, Karnov Group is 2.02 times more volatile than Attendo AB. It trades about 0.0 of its total potential returns per unit of risk. Attendo AB is currently generating about 0.08 per unit of volatility. If you would invest 4,275 in Attendo AB on September 1, 2024 and sell it today you would earn a total of 585.00 from holding Attendo AB or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karnov Group AB vs. Attendo AB
Performance |
| Timeline |
| Karnov Group AB |
| Attendo AB |
Karnov Group and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karnov Group and Attendo AB
The main advantage of trading using opposite Karnov Group and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karnov Group position performs unexpectedly, Attendo AB 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 Attendo AB will offset losses from the drop in Attendo AB's long position.| Karnov Group vs. Attendo AB | Karnov Group vs. Ambea AB | Karnov Group vs. Inwido AB | Karnov Group vs. AcadeMedia AB |
| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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