Correlation Between KLP AksjeNorge and Storebrand Global
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By analyzing existing cross correlation between KLP AksjeNorge Indeks and Storebrand Global Solutions, you can compare the effects of market volatilities on KLP AksjeNorge and Storebrand Global 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 Storebrand Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeNorge and Storebrand Global.
Diversification Opportunities for KLP AksjeNorge and Storebrand Global
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KLP and Storebrand is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and Storebrand Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storebrand Global 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 Storebrand Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storebrand Global has no effect on the direction of KLP AksjeNorge i.e., KLP AksjeNorge and Storebrand Global go up and down completely randomly.
Pair Corralation between KLP AksjeNorge and Storebrand Global
Assuming the 90 days trading horizon KLP AksjeNorge Indeks is expected to generate 1.06 times more return on investment than Storebrand Global. However, KLP AksjeNorge is 1.06 times more volatile than Storebrand Global Solutions. It trades about 0.47 of its potential returns per unit of risk. Storebrand Global Solutions is currently generating about 0.06 per unit of risk. If you would invest 372,850 in KLP AksjeNorge Indeks on October 20, 2024 and sell it today you would earn a total of 22,502 from holding KLP AksjeNorge Indeks or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeNorge Indeks vs. Storebrand Global Solutions
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
| Storebrand Global |
KLP AksjeNorge and Storebrand Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeNorge and Storebrand Global
The main advantage of trading using opposite KLP AksjeNorge and Storebrand Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeNorge position performs unexpectedly, Storebrand Global 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 Storebrand Global will offset losses from the drop in Storebrand Global's long position.| KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. KLP Aksje Fremvoksende |
| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. KLP Aksje Fremvoksende |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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