Correlation Between Arion Banki and Chordate Medical
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By analyzing existing cross correlation between Arion banki hf and Chordate Medical Holding, you can compare the effects of market volatilities on Arion Banki and Chordate Medical 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 Arion Banki with a short position of Chordate Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Chordate Medical.
Diversification Opportunities for Arion Banki and Chordate Medical
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arion and Chordate is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Chordate Medical Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chordate Medical Holding and Arion Banki 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 Arion banki hf are associated (or correlated) with Chordate Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chordate Medical Holding has no effect on the direction of Arion Banki i.e., Arion Banki and Chordate Medical go up and down completely randomly.
Pair Corralation between Arion Banki and Chordate Medical
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.44 times more return on investment than Chordate Medical. However, Arion banki hf is 2.25 times less risky than Chordate Medical. It trades about 0.12 of its potential returns per unit of risk. Chordate Medical Holding is currently generating about -0.58 per unit of risk. If you would invest 1,210 in Arion banki hf on September 23, 2024 and sell it today you would earn a total of 115.00 from holding Arion banki hf or generate 9.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arion banki hf vs. Chordate Medical Holding
Performance |
Timeline |
Arion banki hf |
Chordate Medical Holding |
Arion Banki and Chordate Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arion Banki and Chordate Medical
The main advantage of trading using opposite Arion Banki and Chordate Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Chordate Medical 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 Chordate Medical will offset losses from the drop in Chordate Medical's long position.Arion Banki vs. Svenska Handelsbanken AB | Arion Banki vs. Telia Company AB | Arion Banki vs. Tele2 AB | Arion Banki vs. H M Hennes |
Chordate Medical vs. Sinch AB | Chordate Medical vs. Hexatronic Group AB | Chordate Medical vs. Surgical Science Sweden | Chordate Medical vs. Embracer Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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