Correlation Between KLP AksjeVerden and KLP AksjeGlobal
Specify exactly 2 symbols:
By analyzing existing cross correlation between KLP AksjeVerden Indeks and KLP AksjeGlobal Indeks, you can compare the effects of market volatilities on KLP AksjeVerden 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 KLP AksjeVerden with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeVerden and KLP AksjeGlobal.
Diversification Opportunities for KLP AksjeVerden and KLP AksjeGlobal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KLP and KLP is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeVerden Indeks and KLP AksjeGlobal Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Indeks and KLP AksjeVerden 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 KLP AksjeVerden Indeks 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 Indeks has no effect on the direction of KLP AksjeVerden i.e., KLP AksjeVerden and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between KLP AksjeVerden and KLP AksjeGlobal
Assuming the 90 days trading horizon KLP AksjeVerden Indeks is expected to generate 1.13 times more return on investment than KLP AksjeGlobal. However, KLP AksjeVerden is 1.13 times more volatile than KLP AksjeGlobal Indeks. It trades about 0.12 of its potential returns per unit of risk. KLP AksjeGlobal Indeks is currently generating about 0.1 per unit of risk. If you would invest 141,952 in KLP AksjeVerden Indeks on September 3, 2024 and sell it today you would earn a total of 19,051 from holding KLP AksjeVerden Indeks or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeVerden Indeks vs. KLP AksjeGlobal Indeks
Performance |
| Timeline |
| KLP AksjeVerden Indeks |
| KLP AksjeGlobal Indeks |
KLP AksjeVerden and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeVerden and KLP AksjeGlobal
The main advantage of trading using opposite KLP AksjeVerden and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeVerden 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.| KLP AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden vs. Franklin Floating Rate | KLP AksjeVerden vs. Dalata Hotel Group |
| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |