Correlation Between KLP AksjeNorge and KLP AksjeUSA
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By analyzing existing cross correlation between KLP AksjeNorge Indeks and KLP AksjeUSA Indeks, you can compare the effects of market volatilities on KLP AksjeNorge and KLP AksjeUSA 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 AksjeUSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeNorge and KLP AksjeUSA.
Diversification Opportunities for KLP AksjeNorge and KLP AksjeUSA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and KLP AksjeUSA Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeUSA 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 AksjeUSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeUSA Indeks has no effect on the direction of KLP AksjeNorge i.e., KLP AksjeNorge and KLP AksjeUSA go up and down completely randomly.
Pair Corralation between KLP AksjeNorge and KLP AksjeUSA
Assuming the 90 days trading horizon KLP AksjeNorge is expected to generate 3.04 times less return on investment than KLP AksjeUSA. But when comparing it to its historical volatility, KLP AksjeNorge Indeks is 1.06 times less risky than KLP AksjeUSA. It trades about 0.11 of its potential returns per unit of risk. KLP AksjeUSA Indeks is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 248,998 in KLP AksjeUSA Indeks on September 2, 2024 and sell it today you would earn a total of 13,048 from holding KLP AksjeUSA Indeks or generate 5.24% 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 AksjeUSA Indeks
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
| KLP AksjeUSA Indeks |
KLP AksjeNorge and KLP AksjeUSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeNorge and KLP AksjeUSA
The main advantage of trading using opposite KLP AksjeNorge and KLP AksjeUSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeNorge position performs unexpectedly, KLP AksjeUSA 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 AksjeUSA will offset losses from the drop in KLP AksjeUSA'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 AksjeUSA vs. KLP AksjeNorge Indeks | KLP AksjeUSA vs. KLP Aksje Fremvoksende | KLP AksjeUSA vs. KLP AksjeEuropa Indeks | KLP AksjeUSA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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