Correlation Between KLP AksjeNorge and KLP AksjeGlobal
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By analyzing existing cross correlation between KLP AksjeNorge Indeks and KLP AksjeGlobal Indeks, you can compare the effects of market volatilities on KLP AksjeNorge and KLP AksjeGlobal 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 AksjeNorge with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeNorge and KLP AksjeGlobal.
Diversification Opportunities for KLP AksjeNorge and KLP AksjeGlobal
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and KLP AksjeGlobal Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Indeks and KLP AksjeNorge 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 AksjeNorge Indeks are associated (or correlated) with KLP AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Indeks has no effect on the direction of KLP AksjeNorge i.e., KLP AksjeNorge and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between KLP AksjeNorge and KLP AksjeGlobal
Assuming the 90 days trading horizon KLP AksjeNorge is expected to generate 2.29 times less return on investment than KLP AksjeGlobal. In addition to that, KLP AksjeNorge is 1.23 times more volatile than KLP AksjeGlobal Indeks. It trades about 0.11 of its total potential returns per unit of risk. KLP AksjeGlobal Indeks is currently generating about 0.32 per unit of volatility. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeNorge Indeks vs. KLP AksjeGlobal Indeks
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
| KLP AksjeGlobal Indeks |
KLP AksjeNorge and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeNorge and KLP AksjeGlobal
The main advantage of trading using opposite KLP AksjeNorge and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeNorge position performs unexpectedly, KLP AksjeGlobal 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 AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.| KLP AksjeNorge vs. KLP AksjeGlobal Flerfaktor | KLP AksjeNorge vs. KLP Aksje Fremvoksende | KLP AksjeNorge vs. KLP AksjeEuropa Indeks | KLP AksjeNorge vs. KLP AksjeGlobal Indeks |
| KLP AksjeGlobal vs. KLP AksjeNorge Indeks | KLP AksjeGlobal vs. KLP Aksje Fremvoksende | KLP AksjeGlobal vs. KLP AksjeEuropa Indeks | KLP AksjeGlobal 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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