Correlation Between KLP AksjeUSA and KLP Aksje
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By analyzing existing cross correlation between KLP AksjeUSA Indeks and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on KLP AksjeUSA and KLP Aksje 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 Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeUSA and KLP Aksje.
Diversification Opportunities for KLP AksjeUSA and KLP Aksje
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeUSA Indeks and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende 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 Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of KLP AksjeUSA i.e., KLP AksjeUSA and KLP Aksje go up and down completely randomly.
Pair Corralation between KLP AksjeUSA and KLP Aksje
Assuming the 90 days trading horizon KLP AksjeUSA Indeks is expected to generate 0.92 times more return on investment than KLP Aksje. However, KLP AksjeUSA Indeks is 1.08 times less risky than KLP Aksje. It trades about 0.12 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about 0.07 per unit of risk. If you would invest 232,659 in KLP AksjeUSA Indeks on September 3, 2024 and sell it today you would earn a total of 29,387 from holding KLP AksjeUSA Indeks or generate 12.63% 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 Aksje Fremvoksende
Performance |
| Timeline |
| KLP AksjeUSA Indeks |
| KLP Aksje Fremvoksende |
KLP AksjeUSA and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeUSA and KLP Aksje
The main advantage of trading using opposite KLP AksjeUSA and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeUSA position performs unexpectedly, KLP Aksje 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 Aksje will offset losses from the drop in KLP Aksje's long position.| KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA vs. Franklin Floating Rate | KLP AksjeUSA vs. Dalata Hotel Group |
| KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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