Correlation Between KLP Framtid and DNB Global
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By analyzing existing cross correlation between KLP Framtid and DNB Global Indeks, you can compare the effects of market volatilities on KLP Framtid and DNB Global 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 Framtid with a short position of DNB Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Framtid and DNB Global.
Diversification Opportunities for KLP Framtid and DNB Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLP and DNB is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding KLP Framtid and DNB Global Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Global Indeks and KLP Framtid 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 Framtid are associated (or correlated) with DNB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Global Indeks has no effect on the direction of KLP Framtid i.e., KLP Framtid and DNB Global go up and down completely randomly.
Pair Corralation between KLP Framtid and DNB Global
Assuming the 90 days trading horizon KLP Framtid is expected to generate 1.29 times less return on investment than DNB Global. But when comparing it to its historical volatility, KLP Framtid is 1.33 times less risky than DNB Global. It trades about 0.12 of its potential returns per unit of risk. DNB Global Indeks is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 50,104 in DNB Global Indeks on November 2, 2024 and sell it today you would earn a total of 28,816 from holding DNB Global Indeks or generate 57.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Framtid vs. DNB Global Indeks
Performance |
| Timeline |
| KLP Framtid |
| DNB Global Indeks |
KLP Framtid and DNB Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Framtid and DNB Global
The main advantage of trading using opposite KLP Framtid and DNB Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Framtid position performs unexpectedly, DNB Global 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 DNB Global will offset losses from the drop in DNB Global's long position.| KLP Framtid vs. Franklin Floating Rate | KLP Framtid vs. Franklin Floating Rate | KLP Framtid vs. Franklin Floating Rate | KLP Framtid vs. Dalata Hotel Group |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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