Correlation Between Lgerin Egill and Origo Hf

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

By analyzing existing cross correlation between lgerin Egill Skallagrmsson and Origo Hf, you can compare the effects of market volatilities on Lgerin Egill and Origo 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 Lgerin Egill with a short position of Origo Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lgerin Egill and Origo Hf.

Diversification Opportunities for Lgerin Egill and Origo Hf

0.0

Correlation Coefficient

Lgerin Egill  Origo Hf

Pay attention - limited upside

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

Pair Corralation between Lgerin Egill and Origo Hf

If you would invest (100.00) in Origo Hf on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Origo Hf or generate -100.0% return on investment over 90 days.

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

lgerin Egill Skallagrmsson  vs.  Origo Hf

lgerin Egill Skallag

Risk-Adjusted Performance

Very Weak

Over the last 90 days lgerin Egill Skallagrmsson has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Lgerin Egill is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Origo Hf

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Lgerin Egill and Origo Hf

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

The idea behind lgerin Egill Skallagrmsson and Origo 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.