Correlation Between KLP AksjeNorge and KLP AksjeGlobal
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By analyzing existing cross correlation between KLP AksjeNorge Indeks and KLP AksjeGlobal Flerfaktor, 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
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and KLP AksjeGlobal Flerfaktor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Fler 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 Fler 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 Indeks is expected to generate 0.94 times more return on investment than KLP AksjeGlobal. However, KLP AksjeNorge Indeks is 1.06 times less risky than KLP AksjeGlobal. It trades about -0.18 of its potential returns per unit of risk. KLP AksjeGlobal Flerfaktor is currently generating about -0.19 per unit of risk. If you would invest 406,572 in KLP AksjeNorge Indeks on January 24, 2025 and sell it today you would lose (23,134) from holding KLP AksjeNorge Indeks or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
KLP AksjeNorge Indeks vs. KLP AksjeGlobal Flerfaktor
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| KLP AksjeGlobal Fler |
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.The idea behind KLP AksjeNorge Indeks and KLP AksjeGlobal Flerfaktor 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.| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Dalata Hotel Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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