Correlation Between Metacon AB and Arion Banki
Specify exactly 2 symbols:
By analyzing existing cross correlation between Metacon AB and Arion banki hf, you can compare the effects of market volatilities on Metacon AB and Arion Banki 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 Metacon AB with a short position of Arion Banki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metacon AB and Arion Banki.
Diversification Opportunities for Metacon AB and Arion Banki
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metacon and Arion is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Metacon AB and Arion banki hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arion banki hf and Metacon 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 Metacon AB are associated (or correlated) with Arion Banki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arion banki hf has no effect on the direction of Metacon AB i.e., Metacon AB and Arion Banki go up and down completely randomly.
Pair Corralation between Metacon AB and Arion Banki
Assuming the 90 days trading horizon Metacon AB is expected to under-perform the Arion Banki. In addition to that, Metacon AB is 3.41 times more volatile than Arion banki hf. It trades about -0.18 of its total potential returns per unit of risk. Arion banki hf is currently generating about 0.04 per unit of volatility. If you would invest 1,345 in Arion banki hf on October 28, 2024 and sell it today you would earn a total of 10.00 from holding Arion banki hf or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metacon AB vs. Arion banki hf
Performance |
| Timeline |
| Metacon AB |
| Arion banki hf |
Metacon AB and Arion Banki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metacon AB and Arion Banki
The main advantage of trading using opposite Metacon AB and Arion Banki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metacon AB position performs unexpectedly, Arion Banki 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 Arion Banki will offset losses from the drop in Arion Banki's long position.| Metacon AB vs. Arion banki hf | Metacon AB vs. Catena Media plc | Metacon AB vs. OptiCept Technologies AB | Metacon AB vs. Nordea Bank Abp |
| Arion Banki vs. Arjo AB | Arion Banki vs. Bravida Holding AB | Arion Banki vs. Avanza Bank Holding | Arion Banki vs. Autoliv |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |