Correlation Between Handelsbanken Emerging and Storebrand Global
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By analyzing existing cross correlation between Handelsbanken Emerging Markets and Storebrand Global Solutions, you can compare the effects of market volatilities on Handelsbanken Emerging and Storebrand Global 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 Handelsbanken Emerging with a short position of Storebrand Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handelsbanken Emerging and Storebrand Global.
Diversification Opportunities for Handelsbanken Emerging and Storebrand Global
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Handelsbanken and Storebrand is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Handelsbanken Emerging Markets and Storebrand Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storebrand Global and Handelsbanken Emerging 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 Handelsbanken Emerging Markets are associated (or correlated) with Storebrand Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storebrand Global has no effect on the direction of Handelsbanken Emerging i.e., Handelsbanken Emerging and Storebrand Global go up and down completely randomly.
Pair Corralation between Handelsbanken Emerging and Storebrand Global
Assuming the 90 days trading horizon Handelsbanken Emerging Markets is expected to generate 1.0 times more return on investment than Storebrand Global. However, Handelsbanken Emerging Markets is 1.0 times less risky than Storebrand Global. It trades about 0.1 of its potential returns per unit of risk. Storebrand Global Solutions is currently generating about 0.06 per unit of risk. If you would invest 20,235 in Handelsbanken Emerging Markets on November 28, 2024 and sell it today you would earn a total of 3,246 from holding Handelsbanken Emerging Markets or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Handelsbanken Emerging Markets vs. Storebrand Global Solutions
Performance |
| Timeline |
| Handelsbanken Emerging |
| Storebrand Global |
Handelsbanken Emerging and Storebrand Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handelsbanken Emerging and Storebrand Global
The main advantage of trading using opposite Handelsbanken Emerging and Storebrand Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handelsbanken Emerging position performs unexpectedly, Storebrand Global 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 Storebrand Global will offset losses from the drop in Storebrand Global's long position.| Handelsbanken Emerging vs. KLP AksjeNorge Indeks | Handelsbanken Emerging vs. Storebrand Global Solutions | Handelsbanken Emerging vs. Nordea 1 | Handelsbanken Emerging vs. Franklin Floating Rate |
| Storebrand Global vs. KLP AksjeNorge Indeks | Storebrand Global vs. Nordea 1 | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. KLP AksjeGlobal Flerfaktor |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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