Correlation Between Reginn Hf and Icelandair Group
Can any of the company-specific risk be diversified away by investing in both Reginn Hf and Icelandair Group 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 Reginn Hf and Icelandair Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reginn Hf and Icelandair Group hf, you can compare the effects of market volatilities on Reginn Hf and Icelandair Group 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 Reginn Hf with a short position of Icelandair Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reginn Hf and Icelandair Group.
Diversification Opportunities for Reginn Hf and Icelandair Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Reginn and Icelandair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Reginn Hf and Icelandair Group hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icelandair Group and Reginn Hf 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 Reginn Hf are associated (or correlated) with Icelandair Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icelandair Group has no effect on the direction of Reginn Hf i.e., Reginn Hf and Icelandair Group go up and down completely randomly.
Pair Corralation between Reginn Hf and Icelandair Group
If you would invest 91.00 in Icelandair Group hf on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Icelandair Group hf or generate 42.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Reginn Hf vs. Icelandair Group hf
Performance |
Timeline |
Reginn Hf |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Icelandair Group |
Reginn Hf and Icelandair Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Reginn Hf and Icelandair Group
The main advantage of trading using opposite Reginn Hf and Icelandair Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reginn Hf position performs unexpectedly, Icelandair Group 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 Icelandair Group will offset losses from the drop in Icelandair Group's long position.Reginn Hf vs. Alvotech | Reginn Hf vs. Icelandair Group hf | Reginn Hf vs. Kvika banki hf | Reginn Hf vs. Iceland Seafood International |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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