Correlation Between Aasen Sparebank and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Aasen Sparebank and Schibsted ASA 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 Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aasen Sparebank and Schibsted ASA B, you can compare the effects of market volatilities on Aasen Sparebank and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aasen Sparebank and Schibsted ASA.
Diversification Opportunities for Aasen Sparebank and Schibsted ASA
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aasen and Schibsted is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aasen Sparebank and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Aasen Sparebank i.e., Aasen Sparebank and Schibsted ASA go up and down completely randomly.
Pair Corralation between Aasen Sparebank and Schibsted ASA
Assuming the 90 days trading horizon Aasen Sparebank is expected to generate 4.78 times less return on investment than Schibsted ASA. But when comparing it to its historical volatility, Aasen Sparebank is 1.35 times less risky than Schibsted ASA. It trades about 0.02 of its potential returns per unit of risk. Schibsted ASA B is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 15,231 in Schibsted ASA B on November 27, 2024 and sell it today you would earn a total of 15,349 from holding Schibsted ASA B or generate 100.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aasen Sparebank vs. Schibsted ASA B
Performance |
| Timeline |
| Aasen Sparebank |
| Schibsted ASA B |
Aasen Sparebank and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aasen Sparebank and Schibsted ASA
The main advantage of trading using opposite Aasen Sparebank and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aasen Sparebank position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Aasen Sparebank vs. Grong Sparebank | Aasen Sparebank vs. Melhus Sparebank | Aasen Sparebank vs. Aurskog Sparebank | Aasen Sparebank vs. Sparebanken Ost |
| Schibsted ASA vs. Nordhealth AS | Schibsted ASA vs. Aasen Sparebank | Schibsted ASA vs. Romsdal Sparebank | Schibsted ASA vs. PCI Biotech Holding |
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
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |