Correlation Between KLP Aksje and KLP AksjeUSA
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By analyzing existing cross correlation between KLP Aksje Fremvoksende and KLP AksjeUSA Indeks, you can compare the effects of market volatilities on KLP Aksje 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 Aksje with a short position of KLP AksjeUSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Aksje and KLP AksjeUSA.
Diversification Opportunities for KLP Aksje and KLP AksjeUSA
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KLP Aksje Fremvoksende 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 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 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 Aksje i.e., KLP Aksje and KLP AksjeUSA go up and down completely randomly.
Pair Corralation between KLP Aksje and KLP AksjeUSA
Assuming the 90 days trading horizon KLP Aksje is expected to generate 1.53 times less return on investment than KLP AksjeUSA. In addition to that, KLP Aksje is 1.08 times more volatile than KLP AksjeUSA Indeks. It trades about 0.07 of its total potential returns per unit of risk. KLP AksjeUSA Indeks is currently generating about 0.12 per unit of volatility. If you would invest 232,659 in KLP AksjeUSA Indeks on September 3, 2024 and sell it today you would earn a total of 29,387 from holding KLP AksjeUSA Indeks or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Aksje Fremvoksende vs. KLP AksjeUSA Indeks
Performance |
| Timeline |
| KLP Aksje Fremvoksende |
| KLP AksjeUSA Indeks |
KLP Aksje and KLP AksjeUSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Aksje and KLP AksjeUSA
The main advantage of trading using opposite KLP Aksje and KLP AksjeUSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Aksje 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 Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Dalata Hotel Group |
| KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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