Correlation Between KLP AksjeGlobal and KLP AksjeVerden
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By analyzing existing cross correlation between KLP AksjeGlobal Indeks and KLP AksjeVerden Indeks, you can compare the effects of market volatilities on KLP AksjeGlobal and KLP AksjeVerden 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 KLP AksjeGlobal with a short position of KLP AksjeVerden. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and KLP AksjeVerden.
Diversification Opportunities for KLP AksjeGlobal and KLP AksjeVerden
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KLP and KLP is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeGlobal Indeks and KLP AksjeVerden Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeVerden Indeks and KLP AksjeGlobal 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 KLP AksjeGlobal Indeks are associated (or correlated) with KLP AksjeVerden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeVerden Indeks has no effect on the direction of KLP AksjeGlobal i.e., KLP AksjeGlobal and KLP AksjeVerden go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and KLP AksjeVerden
Assuming the 90 days trading horizon KLP AksjeGlobal Indeks is expected to generate 0.69 times more return on investment than KLP AksjeVerden. However, KLP AksjeGlobal Indeks is 1.45 times less risky than KLP AksjeVerden. It trades about 0.32 of its potential returns per unit of risk. KLP AksjeVerden Indeks is currently generating about 0.17 per unit of risk. If you would invest 391,732 in KLP AksjeGlobal Indeks on September 2, 2024 and sell it today you would earn a total of 15,433 from holding KLP AksjeGlobal Indeks or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeGlobal Indeks vs. KLP AksjeVerden Indeks
Performance |
| Timeline |
| KLP AksjeGlobal Indeks |
| KLP AksjeVerden Indeks |
KLP AksjeGlobal and KLP AksjeVerden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and KLP AksjeVerden
The main advantage of trading using opposite KLP AksjeGlobal and KLP AksjeVerden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal position performs unexpectedly, KLP AksjeVerden 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 KLP AksjeVerden will offset losses from the drop in KLP AksjeVerden's long position.| KLP AksjeGlobal vs. KLP AksjeNorge Indeks | KLP AksjeGlobal vs. KLP Aksje Fremvoksende | KLP AksjeGlobal vs. KLP AksjeEuropa Indeks | KLP AksjeGlobal vs. KLP AksjeGlobal Indeks |
| KLP AksjeVerden vs. KLP AksjeNorge Indeks | KLP AksjeVerden vs. KLP Aksje Fremvoksende | KLP AksjeVerden vs. KLP AksjeEuropa Indeks | KLP AksjeVerden vs. KLP AksjeGlobal Indeks |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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