Correlation Between Viaplay Group and Havsfrun Investment

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

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

Diversification Opportunities for Viaplay Group and Havsfrun Investment

0.45

Correlation Coefficient

Viaplay Group  Havsfrun Investment

Very weak diversification

The 3 months correlation between Viaplay and Havsfrun is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Viaplay Group AB and Havsfrun Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havsfrun Investment and Viaplay Group 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 Viaplay Group AB are associated (or correlated) with Havsfrun Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havsfrun Investment has no effect on the direction of Viaplay Group i.e., Viaplay Group and Havsfrun Investment go up and down completely randomly.

Pair Corralation between Viaplay Group and Havsfrun Investment

Assuming the 90 days trading horizon Viaplay Group AB is expected to generate 1.2 times more return on investment than Havsfrun Investment. However, Viaplay Group is 1.2 times more volatile than Havsfrun Investment AB. It trades about 0.19 of its potential returns per unit of risk. Havsfrun Investment AB is currently generating about -0.03 per unit of risk. If you would invest  59.00  in Viaplay Group AB on April 25, 2025 and sell it today you would earn a total of  27.00  from holding Viaplay Group AB or generate 45.76% return on investment over 90 days.

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

Viaplay Group AB  vs.  Havsfrun Investment AB

Viaplay Group AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Viaplay Group AB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Viaplay Group sustained solid returns over the last few months and may actually be approaching a breakup point.

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 comparatively stable basic indicators, Havsfrun Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Viaplay Group and Havsfrun Investment

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

The idea behind Viaplay Group AB and Havsfrun Investment 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.