Correlation Between KLP AksjeGlobal and KLP Aksje
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By analyzing existing cross correlation between KLP AksjeGlobal Flerfaktor and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on KLP AksjeGlobal and KLP Aksje 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 AksjeGlobal with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and KLP Aksje.
Diversification Opportunities for KLP AksjeGlobal and KLP Aksje
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLP and KLP is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeGlobal Flerfaktor and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende and KLP AksjeGlobal 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 AksjeGlobal Flerfaktor are associated (or correlated) with KLP Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of KLP AksjeGlobal i.e., KLP AksjeGlobal and KLP Aksje go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and KLP Aksje
Assuming the 90 days trading horizon KLP AksjeGlobal Flerfaktor is expected to generate 0.55 times more return on investment than KLP Aksje. However, KLP AksjeGlobal Flerfaktor is 1.81 times less risky than KLP Aksje. It trades about 0.12 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about 0.05 per unit of risk. If you would invest 178,573 in KLP AksjeGlobal Flerfaktor on September 3, 2024 and sell it today you would earn a total of 60,430 from holding KLP AksjeGlobal Flerfaktor or generate 33.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeGlobal Flerfaktor vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| KLP AksjeGlobal Fler |
| KLP Aksje Fremvoksende |
KLP AksjeGlobal and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and KLP Aksje
The main advantage of trading using opposite KLP AksjeGlobal and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal position performs unexpectedly, KLP Aksje 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 Aksje will offset losses from the drop in KLP Aksje's long position.| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Dalata Hotel Group |
| KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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