Correlation Between Arion Banki and KebNi AB
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By analyzing existing cross correlation between Arion banki hf and KebNi AB, you can compare the effects of market volatilities on Arion Banki and KebNi AB 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and KebNi AB.
Diversification Opportunities for Arion Banki and KebNi AB
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arion and KebNi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi AB 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of Arion Banki i.e., Arion Banki and KebNi AB go up and down completely randomly.
Pair Corralation between Arion Banki and KebNi AB
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.47 times more return on investment than KebNi AB. However, Arion banki hf is 2.11 times less risky than KebNi AB. It trades about 0.19 of its potential returns per unit of risk. KebNi AB is currently generating about -0.04 per unit of risk. If you would invest 1,095 in Arion banki hf on September 26, 2024 and sell it today you would earn a total of 235.00 from holding Arion banki hf or generate 21.46% 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. KebNi AB
Performance |
Timeline |
Arion banki hf |
KebNi AB |
Arion Banki and KebNi AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arion Banki and KebNi AB
The main advantage of trading using opposite Arion Banki and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, KebNi AB 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 KebNi AB will offset losses from the drop in KebNi AB'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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