Correlation Between KLP AksjeGlobal and KLP AksjeEuropa
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By analyzing existing cross correlation between KLP AksjeGlobal Indeks and KLP AksjeEuropa Indeks, you can compare the effects of market volatilities on KLP AksjeGlobal and KLP AksjeEuropa 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 AksjeGlobal with a short position of KLP AksjeEuropa. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and KLP AksjeEuropa.
Diversification Opportunities for KLP AksjeGlobal and KLP AksjeEuropa
-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 AksjeGlobal Indeks and KLP AksjeEuropa Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeEuropa Indeks and KLP AksjeGlobal 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 AksjeGlobal Indeks are associated (or correlated) with KLP AksjeEuropa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeEuropa Indeks has no effect on the direction of KLP AksjeGlobal i.e., KLP AksjeGlobal and KLP AksjeEuropa go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and KLP AksjeEuropa
Assuming the 90 days trading horizon KLP AksjeGlobal Indeks is expected to generate 1.22 times more return on investment than KLP AksjeEuropa. However, KLP AksjeGlobal is 1.22 times more volatile than KLP AksjeEuropa Indeks. It trades about 0.12 of its potential returns per unit of risk. KLP AksjeEuropa Indeks is currently generating about -0.03 per unit of risk. If you would invest 304,032 in KLP AksjeGlobal Indeks on September 3, 2024 and sell it today you would earn a total of 42,677 from holding KLP AksjeGlobal Indeks or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeGlobal Indeks vs. KLP AksjeEuropa Indeks
Performance |
| Timeline |
| KLP AksjeGlobal Indeks |
| KLP AksjeEuropa Indeks |
KLP AksjeGlobal and KLP AksjeEuropa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and KLP AksjeEuropa
The main advantage of trading using opposite KLP AksjeGlobal and KLP AksjeEuropa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal position performs unexpectedly, KLP AksjeEuropa 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 AksjeEuropa will offset losses from the drop in KLP AksjeEuropa's long position.| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Dalata Hotel Group |
| KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa vs. Franklin Floating Rate | KLP AksjeEuropa 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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