Correlation Between Karnov Group and Attendo AB

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

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

Diversification Opportunities for Karnov Group and Attendo AB

-0.03

Correlation Coefficient

Karnov Group  Attendo AB

Good diversification

The 3 months correlation between Karnov and Attendo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Karnov Group AB and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB and Karnov 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 Karnov Group AB are associated (or correlated) with Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Karnov Group i.e., Karnov Group and Attendo AB go up and down completely randomly.

Pair Corralation between Karnov Group and Attendo AB

Assuming the 90 days trading horizon Karnov Group AB is expected to generate 1.47 times more return on investment than Attendo AB. However, Karnov Group is 1.47 times more volatile than Attendo AB. It trades about 0.07 of its potential returns per unit of risk. Attendo AB is currently generating about 0.06 per unit of risk. If you would invest  7,610  in Karnov Group AB on September 4, 2024 and sell it today you would earn a total of  520.00  from holding Karnov Group AB or generate 6.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Karnov Group AB  vs.  Attendo AB

Karnov Group AB

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Karnov Group AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Karnov Group may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Attendo AB

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Attendo AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Attendo AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Karnov Group and Attendo AB

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

The idea behind Karnov Group AB and Attendo AB 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..