Correlation Between KLP Aksje and KLP AksjeEuropa
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By analyzing existing cross correlation between KLP Aksje Fremvoksende and KLP AksjeEuropa Indeks, you can compare the effects of market volatilities on KLP Aksje and KLP AksjeEuropa 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 Aksje with a short position of KLP AksjeEuropa. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Aksje and KLP AksjeEuropa.
Diversification Opportunities for KLP Aksje and KLP AksjeEuropa
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KLP and KLP is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding KLP Aksje Fremvoksende and KLP AksjeEuropa Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeEuropa Indeks and KLP Aksje 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 Aksje Fremvoksende are associated (or correlated) with KLP AksjeEuropa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeEuropa Indeks has no effect on the direction of KLP Aksje i.e., KLP Aksje and KLP AksjeEuropa go up and down completely randomly.
Pair Corralation between KLP Aksje and KLP AksjeEuropa
Assuming the 90 days trading horizon KLP Aksje Fremvoksende is expected to under-perform the KLP AksjeEuropa. In addition to that, KLP Aksje is 1.33 times more volatile than KLP AksjeEuropa Indeks. It trades about -0.08 of its total potential returns per unit of risk. KLP AksjeEuropa Indeks is currently generating about -0.09 per unit of volatility. If you would invest 184,685 in KLP AksjeEuropa Indeks on September 2, 2024 and sell it today you would lose (2,286) from holding KLP AksjeEuropa Indeks or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Aksje Fremvoksende vs. KLP AksjeEuropa Indeks
Performance |
| Timeline |
| KLP Aksje Fremvoksende |
| KLP AksjeEuropa Indeks |
KLP Aksje and KLP AksjeEuropa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Aksje and KLP AksjeEuropa
The main advantage of trading using opposite KLP Aksje and KLP AksjeEuropa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Aksje position performs unexpectedly, KLP AksjeEuropa 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 AksjeEuropa will offset losses from the drop in KLP AksjeEuropa's long position.| KLP Aksje vs. KLP AksjeNorge Indeks | KLP Aksje vs. KLP AksjeGlobal Flerfaktor | KLP Aksje vs. KLP Aksje Fremvoksende | KLP Aksje vs. KLP AksjeEuropa Indeks |
| KLP AksjeEuropa vs. KLP AksjeNorge Indeks | KLP AksjeEuropa vs. KLP Aksje Fremvoksende | KLP AksjeEuropa vs. KLP AksjeGlobal Indeks | KLP AksjeEuropa vs. KLP AksjeUSA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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