Correlation Between Icelandair Group and Reginn Hf

Can any of the company-specific risk be diversified away by investing in both Icelandair Group and Reginn 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 Icelandair Group and Reginn Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Icelandair Group hf and Reginn Hf, you can compare the effects of market volatilities on Icelandair Group and Reginn 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 Icelandair Group with a short position of Reginn Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icelandair Group and Reginn Hf.

Diversification Opportunities for Icelandair Group and Reginn Hf

0.0

Correlation Coefficient

Icelandair Group  Reginn Hf

Pay attention - limited upside

The 3 months correlation between Icelandair and Reginn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Icelandair Group hf and Reginn Hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reginn Hf and Icelandair Group 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 Icelandair Group hf are associated (or correlated) with Reginn Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reginn Hf has no effect on the direction of Icelandair Group i.e., Icelandair Group and Reginn Hf go up and down completely randomly.

Pair Corralation between Icelandair Group and Reginn Hf

If you would invest  122.00  in Icelandair Group hf on September 14, 2024 and sell it today you would earn a total of  11.00  from holding Icelandair Group hf or generate 9.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Icelandair Group hf  vs.  Reginn Hf

Icelandair Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Icelandair Group hf are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Icelandair Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Reginn Hf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Reginn Hf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Reginn Hf is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Icelandair Group and Reginn Hf

The main advantage of trading using opposite Icelandair Group and Reginn Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icelandair Group position performs unexpectedly, Reginn 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 Reginn Hf will offset losses from the drop in Reginn Hf's long position.

The idea behind Icelandair Group hf and Reginn Hf pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.