Correlation Between DFS Furniture and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both DFS Furniture and Arcticzymes Technologies 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 DFS Furniture and Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFS Furniture PLC and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on DFS Furniture and Arcticzymes Technologies 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 DFS Furniture with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFS Furniture and Arcticzymes Technologies.
Diversification Opportunities for DFS Furniture and Arcticzymes Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DFS and Arcticzymes is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DFS Furniture PLC and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies and DFS Furniture 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 DFS Furniture PLC are associated (or correlated) with Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of DFS Furniture i.e., DFS Furniture and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between DFS Furniture and Arcticzymes Technologies
Assuming the 90 days trading horizon DFS Furniture PLC is expected to under-perform the Arcticzymes Technologies. But the stock apears to be less risky and, when comparing its historical volatility, DFS Furniture PLC is 2.62 times less risky than Arcticzymes Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The Arcticzymes Technologies ASA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,790 in Arcticzymes Technologies ASA on July 24, 2025 and sell it today you would earn a total of 1,310 from holding Arcticzymes Technologies ASA or generate 73.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
DFS Furniture PLC vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| DFS Furniture PLC |
| Arcticzymes Technologies |
DFS Furniture and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFS Furniture and Arcticzymes Technologies
The main advantage of trading using opposite DFS Furniture and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFS Furniture position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| DFS Furniture vs. United Internet AG | DFS Furniture vs. Spirent Communications plc | DFS Furniture vs. Inspiration Healthcare Group | DFS Furniture vs. Naturhouse Health SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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