Correlation Between KLP AksjeEuropa and KLP AksjeGlobal
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By analyzing existing cross correlation between KLP AksjeEuropa Indeks and KLP AksjeGlobal Indeks, you can compare the effects of market volatilities on KLP AksjeEuropa and KLP AksjeGlobal 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 AksjeEuropa with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeEuropa and KLP AksjeGlobal.
Diversification Opportunities for KLP AksjeEuropa and KLP AksjeGlobal
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLP and KLP is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeEuropa Indeks and KLP AksjeGlobal Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Indeks and KLP AksjeEuropa 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 AksjeEuropa Indeks are associated (or correlated) with KLP AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Indeks has no effect on the direction of KLP AksjeEuropa i.e., KLP AksjeEuropa and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between KLP AksjeEuropa and KLP AksjeGlobal
Assuming the 90 days trading horizon KLP AksjeEuropa is expected to generate 2.9 times less return on investment than KLP AksjeGlobal. But when comparing it to its historical volatility, KLP AksjeEuropa Indeks is 1.2 times less risky than KLP AksjeGlobal. It trades about 0.05 of its potential returns per unit of risk. KLP AksjeGlobal Indeks is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 217,122 in KLP AksjeGlobal Indeks on September 3, 2024 and sell it today you would earn a total of 129,587 from holding KLP AksjeGlobal Indeks or generate 59.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeEuropa Indeks vs. KLP AksjeGlobal Indeks
Performance |
| Timeline |
| KLP AksjeEuropa Indeks |
| KLP AksjeGlobal Indeks |
KLP AksjeEuropa and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeEuropa and KLP AksjeGlobal
The main advantage of trading using opposite KLP AksjeEuropa and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeEuropa position performs unexpectedly, KLP AksjeGlobal 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 AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.| KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa vs. Dalata Hotel Group |
| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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