Correlation Between Skel Fjrfestingaflag and Iceland Seafood
Can any of the company-specific risk be diversified away by investing in both Skel Fjrfestingaflag and Iceland Seafood 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 Skel Fjrfestingaflag and Iceland Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skel fjrfestingaflag hf and Iceland Seafood International, you can compare the effects of market volatilities on Skel Fjrfestingaflag and Iceland Seafood 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 Skel Fjrfestingaflag with a short position of Iceland Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skel Fjrfestingaflag and Iceland Seafood.
Diversification Opportunities for Skel Fjrfestingaflag and Iceland Seafood
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Skel and Iceland is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Skel fjrfestingaflag hf and Iceland Seafood International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iceland Seafood Inte and Skel Fjrfestingaflag 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 Skel fjrfestingaflag hf are associated (or correlated) with Iceland Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iceland Seafood Inte has no effect on the direction of Skel Fjrfestingaflag i.e., Skel Fjrfestingaflag and Iceland Seafood go up and down completely randomly.
Pair Corralation between Skel Fjrfestingaflag and Iceland Seafood
Assuming the 90 days trading horizon Skel fjrfestingaflag hf is expected to under-perform the Iceland Seafood. In addition to that, Skel Fjrfestingaflag is 1.33 times more volatile than Iceland Seafood International. It trades about -0.22 of its total potential returns per unit of risk. Iceland Seafood International is currently generating about -0.1 per unit of volatility. If you would invest 472.00 in Iceland Seafood International on September 2, 2024 and sell it today you would lose (12.00) from holding Iceland Seafood International or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skel fjrfestingaflag hf vs. Iceland Seafood International
Performance |
| Timeline |
| Skel fjrfestingaflag |
| Iceland Seafood Inte |
Skel Fjrfestingaflag and Iceland Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skel Fjrfestingaflag and Iceland Seafood
The main advantage of trading using opposite Skel Fjrfestingaflag and Iceland Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skel Fjrfestingaflag position performs unexpectedly, Iceland Seafood 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 Iceland Seafood will offset losses from the drop in Iceland Seafood's long position.| Skel Fjrfestingaflag vs. Iceland Seafood International | Skel Fjrfestingaflag vs. Alvotech | Skel Fjrfestingaflag vs. Icelandair Group hf | Skel Fjrfestingaflag vs. Kvika 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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