Correlation Between RIAS AS and Flgger Group
Can any of the company-specific risk be diversified away by investing in both RIAS AS and Flgger Group 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 RIAS AS and Flgger Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RIAS AS and Flgger group AS, you can compare the effects of market volatilities on RIAS AS and Flgger 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 RIAS AS with a short position of Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of RIAS AS and Flgger Group.
Diversification Opportunities for RIAS AS and Flgger Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RIAS and Flgger is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding RIAS AS and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group AS and RIAS AS 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 RIAS AS are associated (or correlated) with Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of RIAS AS i.e., RIAS AS and Flgger Group go up and down completely randomly.
Pair Corralation between RIAS AS and Flgger Group
Assuming the 90 days trading horizon RIAS AS is expected to under-perform the Flgger Group. In addition to that, RIAS AS is 1.26 times more volatile than Flgger group AS. It trades about -0.22 of its total potential returns per unit of risk. Flgger group AS is currently generating about 0.18 per unit of volatility. If you would invest 33,800 in Flgger group AS on December 1, 2024 and sell it today you would earn a total of 1,200 from holding Flgger group AS or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RIAS AS vs. Flgger group AS
Performance |
| Timeline |
| RIAS AS |
| Flgger group AS |
RIAS AS and Flgger Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RIAS AS and Flgger Group
The main advantage of trading using opposite RIAS AS and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RIAS AS position performs unexpectedly, Flgger 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 Flgger Group will offset losses from the drop in Flgger Group's long position.The idea behind RIAS AS and Flgger group AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas AS |
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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