Correlation Between Konsolidator and Embla Medical
Can any of the company-specific risk be diversified away by investing in both Konsolidator and Embla Medical 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 Konsolidator and Embla Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Konsolidator AS and Embla Medical hf, you can compare the effects of market volatilities on Konsolidator and Embla Medical 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 Konsolidator with a short position of Embla Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konsolidator and Embla Medical.
Diversification Opportunities for Konsolidator and Embla Medical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konsolidator and Embla is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Konsolidator AS and Embla Medical hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embla Medical hf and Konsolidator 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 Konsolidator AS are associated (or correlated) with Embla Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embla Medical hf has no effect on the direction of Konsolidator i.e., Konsolidator and Embla Medical go up and down completely randomly.
Pair Corralation between Konsolidator and Embla Medical
Assuming the 90 days trading horizon Konsolidator AS is expected to generate 2.74 times more return on investment than Embla Medical. However, Konsolidator is 2.74 times more volatile than Embla Medical hf. It trades about 0.05 of its potential returns per unit of risk. Embla Medical hf is currently generating about -0.19 per unit of risk. If you would invest 378.00 in Konsolidator AS on October 9, 2024 and sell it today you would earn a total of 8.00 from holding Konsolidator AS or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konsolidator AS vs. Embla Medical hf
Performance |
| Timeline |
| Konsolidator AS |
| Embla Medical hf |
Konsolidator and Embla Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konsolidator and Embla Medical
The main advantage of trading using opposite Konsolidator and Embla Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konsolidator position performs unexpectedly, Embla Medical 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 Embla Medical will offset losses from the drop in Embla Medical's long position.| Konsolidator vs. Penneo AS | Konsolidator vs. Orderyoyo AS | Konsolidator vs. FOM Technologies AS | Konsolidator vs. Shape Robotics AS |
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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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