Correlation Between Storebrand Global and KLP Aksje
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By analyzing existing cross correlation between Storebrand Global Solutions and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on Storebrand Global 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 Storebrand Global with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and KLP Aksje.
Diversification Opportunities for Storebrand Global and KLP Aksje
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Storebrand and KLP is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions 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 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 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 Storebrand Global i.e., Storebrand Global and KLP Aksje go up and down completely randomly.
Pair Corralation between Storebrand Global and KLP Aksje
Assuming the 90 days trading horizon Storebrand Global Solutions is expected to generate 1.03 times more return on investment than KLP Aksje. However, Storebrand Global is 1.03 times more volatile than KLP Aksje Fremvoksende. It trades about -0.09 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.14 per unit of risk. If you would invest 237,235 in Storebrand Global Solutions on August 28, 2024 and sell it today you would lose (3,543) from holding Storebrand Global Solutions or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storebrand Global Solutions vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| Storebrand Global |
| KLP Aksje Fremvoksende |
Storebrand Global and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and KLP Aksje
The main advantage of trading using opposite Storebrand Global and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global 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.| 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 Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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