Correlation Between KLP AksjeEuropa and KLP Framtid
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By analyzing existing cross correlation between KLP AksjeEuropa Indeks and KLP Framtid, you can compare the effects of market volatilities on KLP AksjeEuropa and KLP Framtid 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 Framtid. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeEuropa and KLP Framtid.
Diversification Opportunities for KLP AksjeEuropa and KLP Framtid
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLP and KLP is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeEuropa Indeks and KLP Framtid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Framtid 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 Framtid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Framtid has no effect on the direction of KLP AksjeEuropa i.e., KLP AksjeEuropa and KLP Framtid go up and down completely randomly.
Pair Corralation between KLP AksjeEuropa and KLP Framtid
Assuming the 90 days trading horizon KLP AksjeEuropa Indeks is expected to under-perform the KLP Framtid. In addition to that, KLP AksjeEuropa is 1.06 times more volatile than KLP Framtid. It trades about -0.09 of its total potential returns per unit of risk. KLP Framtid is currently generating about 0.25 per unit of volatility. If you would invest 235,035 in KLP Framtid on September 2, 2024 and sell it today you would earn a total of 7,321 from holding KLP Framtid or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeEuropa Indeks vs. KLP Framtid
Performance |
| Timeline |
| KLP AksjeEuropa Indeks |
| KLP Framtid |
KLP AksjeEuropa and KLP Framtid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeEuropa and KLP Framtid
The main advantage of trading using opposite KLP AksjeEuropa and KLP Framtid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeEuropa position performs unexpectedly, KLP Framtid 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 Framtid will offset losses from the drop in KLP Framtid's long position.| KLP AksjeEuropa vs. KLP AksjeNorge Indeks | KLP AksjeEuropa vs. KLP Aksje Fremvoksende | KLP AksjeEuropa vs. KLP AksjeGlobal Indeks | KLP AksjeEuropa vs. KLP AksjeUSA Indeks |
| KLP Framtid vs. KLP AksjeNorge Indeks | KLP Framtid vs. KLP Aksje Fremvoksende | KLP Framtid vs. KLP AksjeEuropa Indeks | KLP Framtid vs. KLP AksjeGlobal Indeks |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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