Correlation Between KLP AksjeNorge and KLP Framtid
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By analyzing existing cross correlation between KLP AksjeNorge Indeks and KLP Framtid, you can compare the effects of market volatilities on KLP AksjeNorge and KLP Framtid 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 Framtid. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeNorge and KLP Framtid.
Diversification Opportunities for KLP AksjeNorge and KLP Framtid
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and KLP Framtid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Framtid 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 Framtid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Framtid has no effect on the direction of KLP AksjeNorge i.e., KLP AksjeNorge and KLP Framtid go up and down completely randomly.
Pair Corralation between KLP AksjeNorge and KLP Framtid
Assuming the 90 days trading horizon KLP AksjeNorge is expected to generate 1.82 times less return on investment than KLP Framtid. In addition to that, KLP AksjeNorge is 1.2 times more volatile than KLP Framtid. It trades about 0.11 of its total potential returns per unit of risk. KLP Framtid is currently generating about 0.25 per unit of volatility. If you would invest 235,035 in KLP Framtid on September 2, 2024 and sell it today you would earn a total of 7,321 from holding KLP Framtid or generate 3.11% 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 Framtid
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
| KLP Framtid |
KLP AksjeNorge and KLP Framtid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeNorge and KLP Framtid
The main advantage of trading using opposite KLP AksjeNorge and KLP Framtid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeNorge position performs unexpectedly, KLP Framtid 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 Framtid will offset losses from the drop in KLP Framtid'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 Framtid vs. KLP AksjeNorge Indeks | KLP Framtid vs. KLP Aksje Fremvoksende | KLP Framtid vs. KLP AksjeEuropa Indeks | KLP Framtid 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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