Correlation Between Avanza Bank and Urb It

Can any of the company-specific risk be diversified away by investing in both Avanza Bank and Urb It 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 Avanza Bank and Urb It into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Avanza Bank Holding and Urb it AB, you can compare the effects of market volatilities on Avanza Bank and Urb It 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 Avanza Bank with a short position of Urb It. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avanza Bank and Urb It.

Diversification Opportunities for Avanza Bank and Urb It

0.0

Correlation Coefficient

Avanza Bank  Urb It

Pay attention - limited upside

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

Pair Corralation between Avanza Bank and Urb It

If you would invest  23,710  in Avanza Bank Holding on September 17, 2024 and sell it today you would earn a total of  3,210  from holding Avanza Bank Holding or generate 13.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	75.38%
Values	Daily Returns

Avanza Bank Holding  vs.  Urb it AB

Avanza Bank Holding

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Avanza Bank Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Avanza Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Urb it AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urb it AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Urb It 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 Avanza Bank and Urb It

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

The idea behind Avanza Bank Holding and Urb it 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.