Correlation Between Online Brands and Acconeer

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

By analyzing existing cross correlation between Online Brands Nordic and Acconeer AB, you can compare the effects of market volatilities on Online Brands and Acconeer 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 Online Brands with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and Acconeer.

Diversification Opportunities for Online Brands and Acconeer

0.11

Correlation Coefficient

Online Brands  Acconeer

Average diversification

The 3 months correlation between Online and Acconeer is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Online Brands 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 Online Brands Nordic are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Online Brands i.e., Online Brands and Acconeer go up and down completely randomly.

Pair Corralation between Online Brands and Acconeer

Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 0.88 times more return on investment than Acconeer. However, Online Brands Nordic is 1.14 times less risky than Acconeer. It trades about 0.0 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.06 per unit of risk. If you would invest  1,500  in Online Brands Nordic on September 1, 2024 and sell it today you would lose (415.00) from holding Online Brands Nordic or give up 27.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Online Brands Nordic  vs.  Acconeer AB

Online Brands Nordic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Online Brands Nordic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Online Brands is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Acconeer AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Online Brands and Acconeer

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

The idea behind Online Brands Nordic and Acconeer 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.