Correlation Between KLP AksjeUSA and KLP AksjeNorge
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By analyzing existing cross correlation between KLP AksjeUSA Indeks and KLP AksjeNorge Indeks, you can compare the effects of market volatilities on KLP AksjeUSA and KLP AksjeNorge 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 AksjeUSA with a short position of KLP AksjeNorge. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeUSA and KLP AksjeNorge.
Diversification Opportunities for KLP AksjeUSA and KLP AksjeNorge
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeUSA Indeks and KLP AksjeNorge Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeNorge Indeks and KLP AksjeUSA 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 AksjeUSA Indeks are associated (or correlated) with KLP AksjeNorge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeNorge Indeks has no effect on the direction of KLP AksjeUSA i.e., KLP AksjeUSA and KLP AksjeNorge go up and down completely randomly.
Pair Corralation between KLP AksjeUSA and KLP AksjeNorge
Assuming the 90 days trading horizon KLP AksjeUSA Indeks is expected to generate 1.06 times more return on investment than KLP AksjeNorge. However, KLP AksjeUSA is 1.06 times more volatile than KLP AksjeNorge Indeks. It trades about 0.33 of its potential returns per unit of risk. KLP AksjeNorge Indeks is currently generating about 0.11 per unit of risk. If you would invest 248,998 in KLP AksjeUSA Indeks on September 2, 2024 and sell it today you would earn a total of 13,048 from holding KLP AksjeUSA Indeks or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeUSA Indeks vs. KLP AksjeNorge Indeks
Performance |
| Timeline |
| KLP AksjeUSA Indeks |
| KLP AksjeNorge Indeks |
KLP AksjeUSA and KLP AksjeNorge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeUSA and KLP AksjeNorge
The main advantage of trading using opposite KLP AksjeUSA and KLP AksjeNorge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeUSA position performs unexpectedly, KLP AksjeNorge 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 AksjeNorge will offset losses from the drop in KLP AksjeNorge's long position.| KLP AksjeUSA vs. KLP AksjeNorge Indeks | KLP AksjeUSA vs. KLP Aksje Fremvoksende | KLP AksjeUSA vs. KLP AksjeEuropa Indeks | KLP AksjeUSA vs. KLP AksjeGlobal Indeks |
| KLP AksjeNorge vs. KLP AksjeGlobal Flerfaktor | KLP AksjeNorge vs. KLP Aksje Fremvoksende | KLP AksjeNorge vs. KLP AksjeEuropa Indeks | KLP AksjeNorge 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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