Correlation Between Mekonomen and IZafe Group
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By analyzing existing cross correlation between Mekonomen AB and iZafe Group AB, you can compare the effects of market volatilities on Mekonomen and IZafe Group 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 Mekonomen with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekonomen and IZafe Group.
Diversification Opportunities for Mekonomen and IZafe Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mekonomen and IZafe is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mekonomen AB and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and Mekonomen 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 Mekonomen AB are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of Mekonomen i.e., Mekonomen and IZafe Group go up and down completely randomly.
Pair Corralation between Mekonomen and IZafe Group
Assuming the 90 days trading horizon Mekonomen AB is expected to under-perform the IZafe Group. But the stock apears to be less risky and, when comparing its historical volatility, Mekonomen AB is 3.58 times less risky than IZafe Group. The stock trades about -0.13 of its potential returns per unit of risk. The iZafe Group AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 22.00 in iZafe Group AB on August 29, 2024 and sell it today you would lose (1.00) from holding iZafe Group AB or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekonomen AB vs. iZafe Group AB
Performance |
| Timeline |
| Mekonomen AB |
| iZafe Group AB |
Mekonomen and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekonomen and IZafe Group
The main advantage of trading using opposite Mekonomen and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekonomen position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| Mekonomen vs. Clas Ohlson AB | Mekonomen vs. Bilia AB | Mekonomen vs. Byggmax Group AB | Mekonomen vs. Peab AB |
| IZafe Group vs. Sprint Bioscience AB | IZafe Group vs. Acarix AS | IZafe Group vs. Annexin Pharmaceuticals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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