Correlation Between Storebrand Global and KLP AksjeGlobal
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By analyzing existing cross correlation between Storebrand Global Solutions and KLP AksjeGlobal Flerfaktor, you can compare the effects of market volatilities on Storebrand Global and KLP AksjeGlobal 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 AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and KLP AksjeGlobal.
Diversification Opportunities for Storebrand Global and KLP AksjeGlobal
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Storebrand and KLP is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions and KLP AksjeGlobal Flerfaktor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Fler 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 AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Fler has no effect on the direction of Storebrand Global i.e., Storebrand Global and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between Storebrand Global and KLP AksjeGlobal
Assuming the 90 days trading horizon Storebrand Global is expected to generate 1.4 times less return on investment than KLP AksjeGlobal. In addition to that, Storebrand Global is 1.44 times more volatile than KLP AksjeGlobal Flerfaktor. It trades about 0.05 of its total potential returns per unit of risk. KLP AksjeGlobal Flerfaktor is currently generating about 0.09 per unit of volatility. If you would invest 239,679 in KLP AksjeGlobal Flerfaktor on November 28, 2024 and sell it today you would earn a total of 2,053 from holding KLP AksjeGlobal Flerfaktor or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storebrand Global Solutions vs. KLP AksjeGlobal Flerfaktor
Performance |
| Timeline |
| Storebrand Global |
| KLP AksjeGlobal Fler |
Storebrand Global and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and KLP AksjeGlobal
The main advantage of trading using opposite Storebrand Global and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global position performs unexpectedly, KLP AksjeGlobal 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 AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.| Storebrand Global vs. KLP AksjeNorge Indeks | Storebrand Global vs. Nordea 1 | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. KLP AksjeGlobal Flerfaktor |
| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. KLP Aksje Fremvoksende |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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