Correlation Between ICEX Main and Skel Fjrfestingaflag
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By analyzing existing cross correlation between ICEX Main and Skel fjrfestingaflag hf, you can compare the effects of market volatilities on ICEX Main and Skel Fjrfestingaflag 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 ICEX Main with a short position of Skel Fjrfestingaflag. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICEX Main and Skel Fjrfestingaflag.
Diversification Opportunities for ICEX Main and Skel Fjrfestingaflag
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICEX and Skel is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ICEX Main and Skel fjrfestingaflag hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skel fjrfestingaflag and ICEX Main 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 ICEX Main are associated (or correlated) with Skel Fjrfestingaflag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skel fjrfestingaflag has no effect on the direction of ICEX Main i.e., ICEX Main and Skel Fjrfestingaflag go up and down completely randomly.
Pair Corralation between ICEX Main and Skel Fjrfestingaflag
Assuming the 90 days trading horizon ICEX Main is expected to generate 0.43 times more return on investment than Skel Fjrfestingaflag. However, ICEX Main is 2.31 times less risky than Skel Fjrfestingaflag. It trades about 0.31 of its potential returns per unit of risk. Skel fjrfestingaflag hf is currently generating about 0.06 per unit of risk. If you would invest 199,589 in ICEX Main on September 14, 2024 and sell it today you would earn a total of 31,903 from holding ICEX Main or generate 15.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
ICEX Main vs. Skel fjrfestingaflag hf
Performance |
Timeline |
ICEX Main and Skel Fjrfestingaflag Volatility Contrast
Predicted Return Density |
Returns |
Skel fjrfestingaflag hf
Pair trading matchups for Skel Fjrfestingaflag
Pair Trading with ICEX Main and Skel Fjrfestingaflag
The main advantage of trading using opposite ICEX Main and Skel Fjrfestingaflag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICEX Main position performs unexpectedly, Skel Fjrfestingaflag 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 Skel Fjrfestingaflag will offset losses from the drop in Skel Fjrfestingaflag's long position.The idea behind ICEX Main and Skel fjrfestingaflag 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.Skel Fjrfestingaflag vs. Arion banki hf | Skel Fjrfestingaflag vs. Icelandair Group hf | Skel Fjrfestingaflag vs. slandsbanki hf | Skel Fjrfestingaflag vs. Kvika banki hf |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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