Correlation Between ROMERIKE SPAREBANK and Swatch Group
Can any of the company-specific risk be diversified away by investing in both ROMERIKE SPAREBANK and Swatch Group 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 Swatch Group 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 The Swatch Group, you can compare the effects of market volatilities on ROMERIKE SPAREBANK and Swatch Group 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 Swatch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROMERIKE SPAREBANK and Swatch Group.
Diversification Opportunities for ROMERIKE SPAREBANK and Swatch Group
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ROMERIKE and Swatch is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ROMERIKE SPAREBANK NK and The Swatch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swatch Group 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 Swatch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swatch Group has no effect on the direction of ROMERIKE SPAREBANK i.e., ROMERIKE SPAREBANK and Swatch Group go up and down completely randomly.
Pair Corralation between ROMERIKE SPAREBANK and Swatch Group
Assuming the 90 days horizon ROMERIKE SPAREBANK NK is expected to generate 0.31 times more return on investment than Swatch Group. However, ROMERIKE SPAREBANK NK is 3.27 times less risky than Swatch Group. It trades about 0.03 of its potential returns per unit of risk. The Swatch Group is currently generating about -0.06 per unit of risk. If you would invest 1,046 in ROMERIKE SPAREBANK NK on October 14, 2024 and sell it today you would earn a total of 17.00 from holding ROMERIKE SPAREBANK NK or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
ROMERIKE SPAREBANK NK vs. The Swatch Group
Performance |
| Timeline |
| ROMERIKE SPAREBANK |
| Swatch Group |
ROMERIKE SPAREBANK and Swatch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROMERIKE SPAREBANK and Swatch Group
The main advantage of trading using opposite ROMERIKE SPAREBANK and Swatch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROMERIKE SPAREBANK position performs unexpectedly, Swatch Group 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 Swatch Group will offset losses from the drop in Swatch Group's long position.| ROMERIKE SPAREBANK vs. Postal Savings Bank | ROMERIKE SPAREBANK vs. Truist Financial | ROMERIKE SPAREBANK vs. OVERSEA CHINUNSPADR2 | ROMERIKE SPAREBANK vs. Oversea Chinese Banking |
| Swatch Group vs. LVMH Mot Hennessy | Swatch Group vs. LVMH Mot Hennessy | Swatch Group vs. Christian Dior SE | Swatch Group vs. Compagnie Financire Richemont |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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