Correlation Between Sparebanken Vest and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Sparebanken Vest and Atresmedia 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 Sparebanken Vest and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebanken Vest and Atresmedia, you can compare the effects of market volatilities on Sparebanken Vest and Atresmedia 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 Sparebanken Vest with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebanken Vest and Atresmedia.
Diversification Opportunities for Sparebanken Vest and Atresmedia
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sparebanken and Atresmedia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sparebanken Vest and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Sparebanken Vest 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 Sparebanken Vest are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Sparebanken Vest i.e., Sparebanken Vest and Atresmedia go up and down completely randomly.
Pair Corralation between Sparebanken Vest and Atresmedia
Assuming the 90 days trading horizon Sparebanken Vest is expected to generate 0.92 times more return on investment than Atresmedia. However, Sparebanken Vest is 1.09 times less risky than Atresmedia. It trades about 0.33 of its potential returns per unit of risk. Atresmedia is currently generating about -0.05 per unit of risk. If you would invest 13,000 in Sparebanken Vest on October 11, 2024 and sell it today you would earn a total of 1,180 from holding Sparebanken Vest or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparebanken Vest vs. Atresmedia
Performance |
| Timeline |
| Sparebanken Vest |
| Atresmedia |
Sparebanken Vest and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebanken Vest and Atresmedia
The main advantage of trading using opposite Sparebanken Vest and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebanken Vest position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Sparebanken Vest vs. Trellus Health plc | Sparebanken Vest vs. Cardinal Health | Sparebanken Vest vs. Eco Animal Health | Sparebanken Vest vs. Future Metals NL |
| Atresmedia vs. Sligro Food Group | Atresmedia vs. Ashtead Technology Holdings | Atresmedia vs. Allianz Technology Trust | Atresmedia vs. Celebrus Technologies plc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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