Arion Banki Correlations
| ARION Stock | 137.50 0.50 0.36% |
The correlation of Arion Banki is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arion Banki moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arion banki hf moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Good diversification
The correlation between Arion banki hf and NYA is -0.12 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Arion banki hf and NYA in the same portfolio, assuming nothing else is changed.
Arion |
The ability to find closely correlated positions to Arion Banki could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arion Banki when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arion Banki - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arion banki hf to buy it.
Moving together with Arion Stock
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Arion Stock performing well and Arion Banki Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Arion Banki's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| ALVO | 1.89 | (0.12) | 0.00 | 0.32 | 0.00 | 3.91 | 19.13 | |||
| FESTI | 0.68 | (0.10) | 0.00 | (5.08) | 0.00 | 1.58 | 3.95 | |||
| ISB | 1.17 | (0.14) | 0.00 | 0.30 | 0.00 | 2.75 | 10.02 | |||
| HAGA | 1.05 | (0.04) | 0.00 | 0.16 | 0.00 | 2.72 | 6.45 | |||
| ARION | 0.95 | (0.18) | 0.00 | 0.77 | 0.00 | 1.95 | 6.48 | |||
| MAREL | 0.94 | (0.04) | 0.00 | (0.18) | 0.00 | 1.85 | 8.61 | |||
| OLGERD | 1.15 | 0.07 | (0.02) | (0.05) | 1.46 | 2.16 | 7.51 | |||
| HAMP | 1.06 | (0.15) | 0.00 | 0.53 | 0.00 | 2.03 | 9.86 | |||
| ICEAIR | 1.39 | (0.36) | 0.00 | 2.49 | 0.00 | 2.65 | 7.51 |
Arion Banki Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Arion Banki stock to make a market-neutral strategy. Peer analysis of Arion Banki could also be used in its relative valuation, which is a method of valuing Arion Banki by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Already Invested in Arion banki hf?
The danger of trading Arion banki hf is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Arion Banki is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Arion Banki. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Arion banki hf is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Complementary Tools for Arion Stock analysis
When running Arion Banki's price analysis, check to measure Arion Banki's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arion Banki is operating at the current time. Most of Arion Banki's value examination focuses on studying past and present price action to predict the probability of Arion Banki's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arion Banki's price. Additionally, you may evaluate how the addition of Arion Banki to your portfolios can decrease your overall portfolio volatility.
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