Correlation Between 5Th Planet and Sunndal Sparebank
Can any of the company-specific risk be diversified away by investing in both 5Th Planet and Sunndal Sparebank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 5Th Planet and Sunndal Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 5Th Planet Games and Sunndal Sparebank, you can compare the effects of market volatilities on 5Th Planet and Sunndal Sparebank 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 5Th Planet with a short position of Sunndal Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5Th Planet and Sunndal Sparebank.
Diversification Opportunities for 5Th Planet and Sunndal Sparebank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 5Th and Sunndal is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding 5Th Planet Games and Sunndal Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunndal Sparebank and 5Th Planet 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 5Th Planet Games are associated (or correlated) with Sunndal Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunndal Sparebank has no effect on the direction of 5Th Planet i.e., 5Th Planet and Sunndal Sparebank go up and down completely randomly.
Pair Corralation between 5Th Planet and Sunndal Sparebank
Assuming the 90 days trading horizon 5Th Planet Games is expected to generate 3.74 times more return on investment than Sunndal Sparebank. However, 5Th Planet is 3.74 times more volatile than Sunndal Sparebank. It trades about 0.04 of its potential returns per unit of risk. Sunndal Sparebank is currently generating about 0.06 per unit of risk. If you would invest 112.00 in 5Th Planet Games on September 2, 2024 and sell it today you would earn a total of 5.00 from holding 5Th Planet Games or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
5Th Planet Games vs. Sunndal Sparebank
Performance |
| Timeline |
| 5Th Planet Games |
| Sunndal Sparebank |
5Th Planet and Sunndal Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5Th Planet and Sunndal Sparebank
The main advantage of trading using opposite 5Th Planet and Sunndal Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5Th Planet position performs unexpectedly, Sunndal Sparebank 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 Sunndal Sparebank will offset losses from the drop in Sunndal Sparebank's long position.| 5Th Planet vs. Solstad Offsho | 5Th Planet vs. Saga Pure ASA | 5Th Planet vs. REC Silicon ASA | 5Th Planet vs. Kongsberg Automotive Holding |
| Sunndal Sparebank vs. Skue Sparebank | Sunndal Sparebank vs. Sparebanken Ost | Sunndal Sparebank vs. Dolphin Drilling AS | Sunndal Sparebank vs. NorAm Drilling AS |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |