Correlation Between Sminn Hf and Sn Hf
Can any of the company-specific risk be diversified away by investing in both Sminn Hf and Sn Hf 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 Sminn Hf and Sn Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sminn hf and Sn hf, you can compare the effects of market volatilities on Sminn Hf and Sn Hf 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 Sminn Hf with a short position of Sn Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sminn Hf and Sn Hf.
Diversification Opportunities for Sminn Hf and Sn Hf
Very good diversification
The 3 months correlation between Sminn and SYN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sminn hf and Sn hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sn hf and Sminn Hf 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 Sminn hf are associated (or correlated) with Sn Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sn hf has no effect on the direction of Sminn Hf i.e., Sminn Hf and Sn Hf go up and down completely randomly.
Pair Corralation between Sminn Hf and Sn Hf
Assuming the 90 days trading horizon Sminn hf is expected to generate 0.78 times more return on investment than Sn Hf. However, Sminn hf is 1.28 times less risky than Sn Hf. It trades about 0.4 of its potential returns per unit of risk. Sn hf is currently generating about 0.19 per unit of risk. If you would invest 1,080 in Sminn hf on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Sminn hf or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sminn hf vs. Sn hf
Performance |
| Timeline |
| Sminn hf |
| Sn hf |
Sminn Hf and Sn Hf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sminn Hf and Sn Hf
The main advantage of trading using opposite Sminn Hf and Sn Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sminn Hf position performs unexpectedly, Sn Hf 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 Sn Hf will offset losses from the drop in Sn Hf's long position.| Sminn Hf vs. Alvotech | Sminn Hf vs. Icelandair Group hf | Sminn Hf vs. slandsbanki hf | Sminn Hf vs. Arion banki hf |
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 CEOs Directory module to screen CEOs from public companies around the world.
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