Correlation Between Storebrand Global and KLP AksjeNorge
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By analyzing existing cross correlation between Storebrand Global Solutions and KLP AksjeNorge Indeks, you can compare the effects of market volatilities on Storebrand Global 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 Storebrand Global with a short position of KLP AksjeNorge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and KLP AksjeNorge.
Diversification Opportunities for Storebrand Global and KLP AksjeNorge
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Storebrand and KLP is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions 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 Storebrand Global 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 Storebrand Global Solutions 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 Storebrand Global i.e., Storebrand Global and KLP AksjeNorge go up and down completely randomly.
Pair Corralation between Storebrand Global and KLP AksjeNorge
Assuming the 90 days trading horizon Storebrand Global is expected to generate 1.06 times less return on investment than KLP AksjeNorge. In addition to that, Storebrand Global is 1.18 times more volatile than KLP AksjeNorge Indeks. It trades about 0.09 of its total potential returns per unit of risk. KLP AksjeNorge Indeks is currently generating about 0.11 per unit of volatility. If you would invest 384,291 in KLP AksjeNorge Indeks on August 30, 2024 and sell it today you would earn a total of 6,155 from holding KLP AksjeNorge Indeks or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storebrand Global Solutions vs. KLP AksjeNorge Indeks
Performance |
| Timeline |
| Storebrand Global |
| KLP AksjeNorge Indeks |
Storebrand Global and KLP AksjeNorge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and KLP AksjeNorge
The main advantage of trading using opposite Storebrand Global and KLP AksjeNorge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global 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.| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Dalata Hotel Group |
| KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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