Correlation Between Acrinova and FastPartner
Can any of the company-specific risk be diversified away by investing in both Acrinova and FastPartner 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 Acrinova and FastPartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acrinova AB Series and FastPartner AB, you can compare the effects of market volatilities on Acrinova and FastPartner 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 Acrinova with a short position of FastPartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrinova and FastPartner.
Diversification Opportunities for Acrinova and FastPartner
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acrinova and FastPartner is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acrinova AB Series and FastPartner AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FastPartner AB and Acrinova 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 Acrinova AB Series are associated (or correlated) with FastPartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FastPartner AB has no effect on the direction of Acrinova i.e., Acrinova and FastPartner go up and down completely randomly.
Pair Corralation between Acrinova and FastPartner
If you would invest (100.00) in Acrinova AB Series on September 7, 2024 and sell it today you would earn a total of 100.00 from holding Acrinova AB Series 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 |
Acrinova AB Series vs. FastPartner AB
Performance |
Timeline |
Acrinova AB Series |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FastPartner AB |
Acrinova and FastPartner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acrinova and FastPartner
The main advantage of trading using opposite Acrinova and FastPartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acrinova position performs unexpectedly, FastPartner 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 FastPartner will offset losses from the drop in FastPartner's long position.The idea behind Acrinova AB Series and FastPartner 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.FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Platzer Fastigheter Holding | FastPartner vs. Nyfosa AB | FastPartner vs. Fabege AB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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