Correlation Between Havsfrun Investment and AcadeMedia

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

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

Diversification Opportunities for Havsfrun Investment and AcadeMedia

0.34

Correlation Coefficient

Havsfrun Investment  AcadeMedia

Weak diversification

The 3 months correlation between Havsfrun and AcadeMedia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and AcadeMedia go up and down completely randomly.

Pair Corralation between Havsfrun Investment and AcadeMedia

Assuming the 90 days trading horizon Havsfrun Investment AB is expected to under-perform the AcadeMedia. In addition to that, Havsfrun Investment is 1.45 times more volatile than AcadeMedia AB. It trades about -0.05 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about 0.09 per unit of volatility. If you would invest  7,910  in AcadeMedia AB on April 17, 2025 and sell it today you would earn a total of  860.00  from holding AcadeMedia AB or generate 10.87% return on investment over 90 days.

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

Havsfrun Investment AB  vs.  AcadeMedia AB

Havsfrun Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Havsfrun Investment AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

AcadeMedia AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AcadeMedia AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AcadeMedia unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Havsfrun Investment and AcadeMedia

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

The idea behind Havsfrun Investment AB and AcadeMedia 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.