Correlation Between Arion Banki and Q Linea
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By analyzing existing cross correlation between Arion banki hf and Q linea AB, you can compare the effects of market volatilities on Arion Banki and Q Linea 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 Q Linea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arion Banki and Q Linea.
Diversification Opportunities for Arion Banki and Q Linea
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arion and QLINEA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and Q linea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q linea 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 Q Linea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q linea AB has no effect on the direction of Arion Banki i.e., Arion Banki and Q Linea go up and down completely randomly.
Pair Corralation between Arion Banki and Q Linea
Assuming the 90 days trading horizon Arion banki hf is expected to generate 0.3 times more return on investment than Q Linea. However, Arion banki hf is 3.37 times less risky than Q Linea. It trades about 0.12 of its potential returns per unit of risk. Q linea AB is currently generating about -0.37 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 | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arion banki hf vs. Q linea AB
Performance |
Timeline |
Arion banki hf |
Q linea AB |
Arion Banki and Q Linea Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arion Banki and Q Linea
The main advantage of trading using opposite Arion Banki and Q Linea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arion Banki position performs unexpectedly, Q Linea 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 Q Linea will offset losses from the drop in Q Linea'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 |
Q Linea vs. Immunovia publ AB | Q Linea vs. Camurus AB | Q Linea vs. Hansa Biopharma AB | Q Linea vs. Bonesupport Holding 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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