Correlation Between KLP AksjeGlobal and Handelsbanken Emerging
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By analyzing existing cross correlation between KLP AksjeGlobal Flerfaktor and Handelsbanken Emerging Markets, you can compare the effects of market volatilities on KLP AksjeGlobal and Handelsbanken Emerging 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 Handelsbanken Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and Handelsbanken Emerging.
Diversification Opportunities for KLP AksjeGlobal and Handelsbanken Emerging
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLP and Handelsbanken is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeGlobal Flerfaktor and Handelsbanken Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsbanken Emerging 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 Handelsbanken Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsbanken Emerging has no effect on the direction of KLP AksjeGlobal i.e., KLP AksjeGlobal and Handelsbanken Emerging go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and Handelsbanken Emerging
Assuming the 90 days trading horizon KLP AksjeGlobal is expected to generate 4.92 times less return on investment than Handelsbanken Emerging. But when comparing it to its historical volatility, KLP AksjeGlobal Flerfaktor is 1.17 times less risky than Handelsbanken Emerging. It trades about 0.09 of its potential returns per unit of risk. Handelsbanken Emerging Markets is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 22,455 in Handelsbanken Emerging Markets on November 28, 2024 and sell it today you would earn a total of 1,026 from holding Handelsbanken Emerging Markets or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
KLP AksjeGlobal Flerfaktor vs. Handelsbanken Emerging Markets
Performance |
| Timeline |
| KLP AksjeGlobal Fler |
| Handelsbanken Emerging |
KLP AksjeGlobal and Handelsbanken Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and Handelsbanken Emerging
The main advantage of trading using opposite KLP AksjeGlobal and Handelsbanken Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal position performs unexpectedly, Handelsbanken Emerging 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 Handelsbanken Emerging will offset losses from the drop in Handelsbanken Emerging'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 |
| Handelsbanken Emerging vs. KLP AksjeNorge Indeks | Handelsbanken Emerging vs. Storebrand Global Solutions | Handelsbanken Emerging vs. Nordea 1 | Handelsbanken Emerging vs. Franklin Floating Rate |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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