Correlation Between KLP Framtid and KLP Aksje
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By analyzing existing cross correlation between KLP Framtid and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on KLP Framtid 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 Framtid with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Framtid and KLP Aksje.
Diversification Opportunities for KLP Framtid and KLP Aksje
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and KLP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding KLP Framtid 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 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 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 Framtid i.e., KLP Framtid and KLP Aksje go up and down completely randomly.
Pair Corralation between KLP Framtid and KLP Aksje
Assuming the 90 days trading horizon KLP Framtid is expected to generate 0.83 times more return on investment than KLP Aksje. However, KLP Framtid is 1.21 times less risky than KLP Aksje. It trades about 0.25 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.04 per unit of risk. If you would invest 235,035 in KLP Framtid on September 2, 2024 and sell it today you would earn a total of 7,321 from holding KLP Framtid or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Framtid vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| KLP Framtid |
| KLP Aksje Fremvoksende |
KLP Framtid and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Framtid and KLP Aksje
The main advantage of trading using opposite KLP Framtid and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Framtid 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 Framtid vs. KLP AksjeNorge Indeks | KLP Framtid vs. KLP Aksje Fremvoksende | KLP Framtid vs. KLP AksjeEuropa Indeks | KLP Framtid vs. KLP AksjeGlobal Indeks |
| KLP Aksje vs. KLP AksjeNorge Indeks | KLP Aksje vs. KLP AksjeEuropa Indeks | KLP Aksje vs. KLP AksjeGlobal Indeks | KLP Aksje vs. KLP AksjeUSA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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