Correlation Between ROMERIKE SPAREBANK and KERINGUNSPADR 1/10
Can any of the company-specific risk be diversified away by investing in both ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 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 ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ROMERIKE SPAREBANK NK and KERINGUNSPADR 110 EO, you can compare the effects of market volatilities on ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 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 ROMERIKE SPAREBANK with a short position of KERINGUNSPADR 1/10. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROMERIKE SPAREBANK and KERINGUNSPADR 1/10.
Diversification Opportunities for ROMERIKE SPAREBANK and KERINGUNSPADR 1/10
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ROMERIKE and KERINGUNSPADR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ROMERIKE SPAREBANK NK and KERINGUNSPADR 110 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERINGUNSPADR 1/10 and ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK NK are associated (or correlated) with KERINGUNSPADR 1/10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERINGUNSPADR 1/10 has no effect on the direction of ROMERIKE SPAREBANK i.e., ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 go up and down completely randomly.
Pair Corralation between ROMERIKE SPAREBANK and KERINGUNSPADR 1/10
Assuming the 90 days horizon ROMERIKE SPAREBANK NK is expected to generate 0.36 times more return on investment than KERINGUNSPADR 1/10. However, ROMERIKE SPAREBANK NK is 2.74 times less risky than KERINGUNSPADR 1/10. It trades about -0.11 of its potential returns per unit of risk. KERINGUNSPADR 110 EO is currently generating about -0.17 per unit of risk. If you would invest 1,075 in ROMERIKE SPAREBANK NK on October 15, 2024 and sell it today you would lose (12.00) from holding ROMERIKE SPAREBANK NK or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROMERIKE SPAREBANK NK vs. KERINGUNSPADR 110 EO
Performance |
| Timeline |
| ROMERIKE SPAREBANK |
| KERINGUNSPADR 1/10 |
ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROMERIKE SPAREBANK and KERINGUNSPADR 1/10
The main advantage of trading using opposite ROMERIKE SPAREBANK and KERINGUNSPADR 1/10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROMERIKE SPAREBANK position performs unexpectedly, KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 will offset losses from the drop in KERINGUNSPADR 1/10's long position.| ROMERIKE SPAREBANK vs. POSBO UNSPADRS20YC1 | ROMERIKE SPAREBANK vs. Postal Savings Bank | ROMERIKE SPAREBANK vs. Truist Financial | ROMERIKE SPAREBANK vs. OVERSEA CHINUNSPADR2 |
| KERINGUNSPADR 1/10 vs. ACCSYS TECHPLC EO | KERINGUNSPADR 1/10 vs. Canon Marketing Japan | KERINGUNSPADR 1/10 vs. Bio Techne Corp | KERINGUNSPADR 1/10 vs. RETAIL FOOD 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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