Correlation Between KLP AksjeGlobal and Storebrand Global
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By analyzing existing cross correlation between KLP AksjeGlobal Flerfaktor and Storebrand Global Solutions, you can compare the effects of market volatilities on KLP AksjeGlobal 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 AksjeGlobal with a short position of Storebrand Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and Storebrand Global.
Diversification Opportunities for KLP AksjeGlobal and Storebrand Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KLP and Storebrand is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeGlobal Flerfaktor 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 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 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 AksjeGlobal i.e., KLP AksjeGlobal and Storebrand Global go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and Storebrand Global
Assuming the 90 days trading horizon KLP AksjeGlobal Flerfaktor is expected to generate 0.59 times more return on investment than Storebrand Global. However, KLP AksjeGlobal Flerfaktor is 1.68 times less risky than Storebrand Global. It trades about 0.12 of its potential returns per unit of risk. Storebrand Global Solutions is currently generating about 0.05 per unit of risk. If you would invest 177,149 in KLP AksjeGlobal Flerfaktor on November 28, 2024 and sell it today you would earn a total of 64,583 from holding KLP AksjeGlobal Flerfaktor or generate 36.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeGlobal Flerfaktor vs. Storebrand Global Solutions
Performance |
| Timeline |
| KLP AksjeGlobal Fler |
| Storebrand Global |
KLP AksjeGlobal and Storebrand Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and Storebrand Global
The main advantage of trading using opposite KLP AksjeGlobal and Storebrand Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal 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 AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. KLP Aksje Fremvoksende |
| Storebrand Global vs. KLP AksjeNorge Indeks | Storebrand Global vs. Nordea 1 | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. KLP AksjeGlobal Flerfaktor |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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