Correlation Between Sparebanken Vest and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Sparebanken Vest and Everyman Media 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 Everyman Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebanken Vest and Everyman Media Group, you can compare the effects of market volatilities on Sparebanken Vest and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebanken Vest and Everyman Media.
Diversification Opportunities for Sparebanken Vest and Everyman Media
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sparebanken and Everyman is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sparebanken Vest and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Sparebanken Vest i.e., Sparebanken Vest and Everyman Media go up and down completely randomly.
Pair Corralation between Sparebanken Vest and Everyman Media
Assuming the 90 days trading horizon Sparebanken Vest is expected to generate 0.84 times more return on investment than Everyman Media. However, Sparebanken Vest is 1.19 times less risky than Everyman Media. It trades about 0.09 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.05 per unit of risk. If you would invest 8,037 in Sparebanken Vest on October 11, 2024 and sell it today you would earn a total of 6,143 from holding Sparebanken Vest or generate 76.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.18% |
| Values | Daily Returns |
Sparebanken Vest vs. Everyman Media Group
Performance |
| Timeline |
| Sparebanken Vest |
| Everyman Media Group |
Sparebanken Vest and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebanken Vest and Everyman Media
The main advantage of trading using opposite Sparebanken Vest and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebanken Vest position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Sparebanken Vest vs. Everyman Media Group | Sparebanken Vest vs. AcadeMedia AB | Sparebanken Vest vs. Grand Vision Media | Sparebanken Vest vs. One Media iP |
| Everyman Media vs. AMG Advanced Metallurgical | Everyman Media vs. Wheaton Precious Metals | Everyman Media vs. Sovereign Metals | Everyman Media vs. Alien Metals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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