Correlation Between Aasen Sparebank and Gaming Innovation
Can any of the company-specific risk be diversified away by investing in both Aasen Sparebank and Gaming Innovation 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 Aasen Sparebank and Gaming Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aasen Sparebank and Gaming Innovation Group, you can compare the effects of market volatilities on Aasen Sparebank and Gaming Innovation 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 Aasen Sparebank with a short position of Gaming Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aasen Sparebank and Gaming Innovation.
Diversification Opportunities for Aasen Sparebank and Gaming Innovation
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aasen and Gaming is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aasen Sparebank and Gaming Innovation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Innovation and Aasen 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 Aasen Sparebank are associated (or correlated) with Gaming Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Innovation has no effect on the direction of Aasen Sparebank i.e., Aasen Sparebank and Gaming Innovation go up and down completely randomly.
Pair Corralation between Aasen Sparebank and Gaming Innovation
Assuming the 90 days trading horizon Aasen Sparebank is expected to generate 0.81 times more return on investment than Gaming Innovation. However, Aasen Sparebank is 1.24 times less risky than Gaming Innovation. It trades about 0.03 of its potential returns per unit of risk. Gaming Innovation Group is currently generating about 0.0 per unit of risk. If you would invest 10,815 in Aasen Sparebank on August 31, 2024 and sell it today you would earn a total of 1,185 from holding Aasen Sparebank or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Aasen Sparebank vs. Gaming Innovation Group
Performance |
| Timeline |
| Aasen Sparebank |
| Gaming Innovation |
Aasen Sparebank and Gaming Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aasen Sparebank and Gaming Innovation
The main advantage of trading using opposite Aasen Sparebank and Gaming Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aasen Sparebank position performs unexpectedly, Gaming Innovation 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 Gaming Innovation will offset losses from the drop in Gaming Innovation's long position.| Aasen Sparebank vs. Sparebank 1 SMN | Aasen Sparebank vs. Sparebank 1 Nord Norge | Aasen Sparebank vs. Sparebanken Vest | Aasen Sparebank vs. Sparebank 1 Ostfold |
| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron ASA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |