Correlation Between KLP AksjeEuropa and KLP AksjeVerden
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By analyzing existing cross correlation between KLP AksjeEuropa Indeks and KLP AksjeVerden Indeks, you can compare the effects of market volatilities on KLP AksjeEuropa and KLP AksjeVerden 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 AksjeVerden. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeEuropa and KLP AksjeVerden.
Diversification Opportunities for KLP AksjeEuropa and KLP AksjeVerden
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLP and KLP is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeEuropa Indeks and KLP AksjeVerden Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeVerden 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 AksjeVerden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeVerden Indeks has no effect on the direction of KLP AksjeEuropa i.e., KLP AksjeEuropa and KLP AksjeVerden go up and down completely randomly.
Pair Corralation between KLP AksjeEuropa and KLP AksjeVerden
Assuming the 90 days trading horizon KLP AksjeEuropa is expected to generate 2.74 times less return on investment than KLP AksjeVerden. But when comparing it to its historical volatility, KLP AksjeEuropa Indeks is 1.16 times less risky than KLP AksjeVerden. It trades about 0.05 of its potential returns per unit of risk. KLP AksjeVerden Indeks is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 103,476 in KLP AksjeVerden Indeks on September 3, 2024 and sell it today you would earn a total of 57,527 from holding KLP AksjeVerden Indeks or generate 55.59% 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 AksjeVerden Indeks
Performance |
| Timeline |
| KLP AksjeEuropa Indeks |
| KLP AksjeVerden Indeks |
KLP AksjeEuropa and KLP AksjeVerden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeEuropa and KLP AksjeVerden
The main advantage of trading using opposite KLP AksjeEuropa and KLP AksjeVerden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeEuropa position performs unexpectedly, KLP AksjeVerden 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 AksjeVerden will offset losses from the drop in KLP AksjeVerden'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 AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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