Correlation Between AVI Japan and Intrum AB
Can any of the company-specific risk be diversified away by investing in both AVI Japan and Intrum AB 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 AVI Japan and Intrum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVI Japan Opportunity and Intrum AB, you can compare the effects of market volatilities on AVI Japan and Intrum AB 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 AVI Japan with a short position of Intrum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVI Japan and Intrum AB.
Diversification Opportunities for AVI Japan and Intrum AB
Very good diversification
The 3 months correlation between AVI and Intrum is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AVI Japan Opportunity and Intrum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum AB and AVI Japan 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 AVI Japan Opportunity are associated (or correlated) with Intrum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum AB has no effect on the direction of AVI Japan i.e., AVI Japan and Intrum AB go up and down completely randomly.
Pair Corralation between AVI Japan and Intrum AB
Assuming the 90 days trading horizon AVI Japan Opportunity is expected to generate 0.44 times more return on investment than Intrum AB. However, AVI Japan Opportunity is 2.28 times less risky than Intrum AB. It trades about 0.02 of its potential returns per unit of risk. Intrum AB is currently generating about -0.2 per unit of risk. If you would invest 16,498 in AVI Japan Opportunity on July 22, 2025 and sell it today you would earn a total of 202.00 from holding AVI Japan Opportunity or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
AVI Japan Opportunity vs. Intrum AB
Performance |
| Timeline |
| AVI Japan Opportunity |
| Intrum AB |
AVI Japan and Intrum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVI Japan and Intrum AB
The main advantage of trading using opposite AVI Japan and Intrum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVI Japan position performs unexpectedly, Intrum AB 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 Intrum AB will offset losses from the drop in Intrum AB's long position.| AVI Japan vs. Batm Advanced Communications | AVI Japan vs. Aeorema Communications Plc | AVI Japan vs. Take Two Interactive Software | AVI Japan vs. Gamma Communications PLC |
| Intrum AB vs. Batm Advanced Communications | Intrum AB vs. Westlake Chemical Corp | Intrum AB vs. Spirent Communications plc | Intrum AB vs. Eastman Chemical Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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