Correlation Between KLP AksjeNorge and DNB Norge
Specify exactly 2 symbols:
By analyzing existing cross correlation between KLP AksjeNorge Indeks and DNB Norge Selektiv, you can compare the effects of market volatilities on KLP AksjeNorge and DNB Norge 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 DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeNorge and DNB Norge.
Diversification Opportunities for KLP AksjeNorge and DNB Norge
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KLP and DNB is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeNorge Indeks and DNB Norge Selektiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Norge Selektiv 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 DNB Norge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Norge Selektiv has no effect on the direction of KLP AksjeNorge i.e., KLP AksjeNorge and DNB Norge go up and down completely randomly.
Pair Corralation between KLP AksjeNorge and DNB Norge
Assuming the 90 days trading horizon KLP AksjeNorge Indeks is expected to generate 1.27 times more return on investment than DNB Norge. However, KLP AksjeNorge is 1.27 times more volatile than DNB Norge Selektiv. It trades about 0.36 of its potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.16 per unit of risk. If you would invest 377,757 in KLP AksjeNorge Indeks on November 2, 2024 and sell it today you would earn a total of 19,459 from holding KLP AksjeNorge Indeks or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeNorge Indeks vs. DNB Norge Selektiv
Performance |
| Timeline |
| KLP AksjeNorge Indeks |
| DNB Norge Selektiv |
KLP AksjeNorge and DNB Norge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeNorge and DNB Norge
The main advantage of trading using opposite KLP AksjeNorge and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeNorge position performs unexpectedly, DNB Norge 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 DNB Norge will offset losses from the drop in DNB Norge's long position.| KLP AksjeNorge vs. Storebrand Global Solutions | KLP AksjeNorge vs. Nordea 1 | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Nordnet Teknologi Indeks |
| DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |