Correlation Between Intrum Justitia and Firefly AB

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

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

Diversification Opportunities for Intrum Justitia and Firefly AB

0.64

Correlation Coefficient

Intrum Justitia  Firefly AB

Poor diversification

The 3 months correlation between Intrum and Firefly is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Intrum Justitia AB and Firefly AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firefly AB and Intrum Justitia 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 Intrum Justitia AB are associated (or correlated) with Firefly AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firefly AB has no effect on the direction of Intrum Justitia i.e., Intrum Justitia and Firefly AB go up and down completely randomly.

Pair Corralation between Intrum Justitia and Firefly AB

Assuming the 90 days trading horizon Intrum Justitia AB is expected to generate 5.21 times more return on investment than Firefly AB. However, Intrum Justitia is 5.21 times more volatile than Firefly AB. It trades about 0.22 of its potential returns per unit of risk. Firefly AB is currently generating about 0.15 per unit of risk. If you would invest  3,018  in Intrum Justitia AB on April 24, 2025 and sell it today you would earn a total of  3,638  from holding Intrum Justitia AB or generate 120.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Intrum Justitia AB  vs.  Firefly AB

Intrum Justitia AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intrum Justitia AB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intrum Justitia sustained solid returns over the last few months and may actually be approaching a breakup point.

Firefly AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Firefly AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Firefly AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Intrum Justitia and Firefly AB

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

The idea behind Intrum Justitia AB and Firefly 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.