Correlation Between Atea ASA and Veidekke ASA
Can any of the company-specific risk be diversified away by investing in both Atea ASA and Veidekke 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 Atea ASA and Veidekke ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atea ASA and Veidekke ASA, you can compare the effects of market volatilities on Atea ASA and Veidekke 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 Atea ASA with a short position of Veidekke ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atea ASA and Veidekke ASA.
Diversification Opportunities for Atea ASA and Veidekke ASA
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atea and Veidekke is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Atea ASA and Veidekke ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veidekke ASA and Atea ASA 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 Atea ASA are associated (or correlated) with Veidekke ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veidekke ASA has no effect on the direction of Atea ASA i.e., Atea ASA and Veidekke ASA go up and down completely randomly.
Pair Corralation between Atea ASA and Veidekke ASA
Assuming the 90 days trading horizon Atea ASA is expected to under-perform the Veidekke ASA. In addition to that, Atea ASA is 1.05 times more volatile than Veidekke ASA. It trades about -0.04 of its total potential returns per unit of risk. Veidekke ASA is currently generating about 0.27 per unit of volatility. If you would invest 12,560 in Veidekke ASA on August 28, 2024 and sell it today you would earn a total of 1,080 from holding Veidekke ASA or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atea ASA vs. Veidekke ASA
Performance |
| Timeline |
| Atea ASA |
| Veidekke ASA |
Atea ASA and Veidekke ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atea ASA and Veidekke ASA
The main advantage of trading using opposite Atea ASA and Veidekke ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atea ASA position performs unexpectedly, Veidekke 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 Veidekke ASA will offset losses from the drop in Veidekke ASA's long position.| Atea ASA vs. Gjensidige Forsikring ASA | Atea ASA vs. Veidekke ASA | Atea ASA vs. Orkla ASA | Atea ASA vs. Aker ASA |
| Veidekke ASA vs. AF Gruppen ASA | Veidekke ASA vs. Gjensidige Forsikring ASA | Veidekke ASA vs. Storebrand ASA | Veidekke ASA vs. Orkla 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |