Correlation Between Alternus Energy and Grong Sparebank
Can any of the company-specific risk be diversified away by investing in both Alternus Energy and Grong 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 Alternus Energy and Grong Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternus Energy Group and Grong Sparebank, you can compare the effects of market volatilities on Alternus Energy and Grong 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 Alternus Energy with a short position of Grong Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and Grong Sparebank.
Diversification Opportunities for Alternus Energy and Grong Sparebank
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alternus and Grong is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and Grong Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grong Sparebank and Alternus Energy 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 Alternus Energy Group are associated (or correlated) with Grong Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grong Sparebank has no effect on the direction of Alternus Energy i.e., Alternus Energy and Grong Sparebank go up and down completely randomly.
Pair Corralation between Alternus Energy and Grong Sparebank
Assuming the 90 days trading horizon Alternus Energy Group is expected to generate 13.23 times more return on investment than Grong Sparebank. However, Alternus Energy is 13.23 times more volatile than Grong Sparebank. It trades about 0.06 of its potential returns per unit of risk. Grong Sparebank is currently generating about 0.05 per unit of risk. If you would invest 35.00 in Alternus Energy Group on September 13, 2024 and sell it today you would lose (2.00) from holding Alternus Energy Group or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alternus Energy Group vs. Grong Sparebank
Performance |
| Timeline |
| Alternus Energy Group |
| Grong Sparebank |
Alternus Energy and Grong Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and Grong Sparebank
The main advantage of trading using opposite Alternus Energy and Grong Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy position performs unexpectedly, Grong 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 Grong Sparebank will offset losses from the drop in Grong Sparebank's long position.| Alternus Energy vs. Grong Sparebank | Alternus Energy vs. Shelf Drilling | Alternus Energy vs. Aasen Sparebank | Alternus Energy vs. Instabank ASA |
| Grong Sparebank vs. DnB ASA | Grong Sparebank vs. Sparebank 1 SMN | Grong Sparebank vs. Sparebanken Mre | Grong Sparebank vs. Sparebank 1 Ostfold |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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