Correlation Between Storebrand Global and Origin Enterprises
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By analyzing existing cross correlation between Storebrand Global Solutions and Origin Enterprises Plc, you can compare the effects of market volatilities on Storebrand Global and Origin Enterprises 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 Origin Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and Origin Enterprises.
Diversification Opportunities for Storebrand Global and Origin Enterprises
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Storebrand and Origin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions and Origin Enterprises Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Enterprises Plc 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 Origin Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Enterprises Plc has no effect on the direction of Storebrand Global i.e., Storebrand Global and Origin Enterprises go up and down completely randomly.
Pair Corralation between Storebrand Global and Origin Enterprises
Assuming the 90 days trading horizon Storebrand Global Solutions is expected to generate 0.45 times more return on investment than Origin Enterprises. However, Storebrand Global Solutions is 2.2 times less risky than Origin Enterprises. It trades about -0.09 of its potential returns per unit of risk. Origin Enterprises Plc is currently generating about -0.21 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 Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Storebrand Global Solutions vs. Origin Enterprises Plc
Performance |
| Timeline |
| Storebrand Global |
| Origin Enterprises Plc |
Storebrand Global and Origin Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and Origin Enterprises
The main advantage of trading using opposite Storebrand Global and Origin Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global position performs unexpectedly, Origin Enterprises 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 Origin Enterprises will offset losses from the drop in Origin Enterprises' 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 |
| Origin Enterprises vs. Glanbia PLC | Origin Enterprises vs. Kerry Group | Origin Enterprises vs. FBD Holdings PLC | Origin Enterprises 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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