Correlation Between Aurskog Sparebank and EAM Solar
Can any of the company-specific risk be diversified away by investing in both Aurskog Sparebank and EAM Solar 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 Aurskog Sparebank and EAM Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurskog Sparebank and EAM Solar ASA, you can compare the effects of market volatilities on Aurskog Sparebank and EAM Solar 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 Aurskog Sparebank with a short position of EAM Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurskog Sparebank and EAM Solar.
Diversification Opportunities for Aurskog Sparebank and EAM Solar
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurskog and EAM is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aurskog Sparebank and EAM Solar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAM Solar ASA and Aurskog 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 Aurskog Sparebank are associated (or correlated) with EAM Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAM Solar ASA has no effect on the direction of Aurskog Sparebank i.e., Aurskog Sparebank and EAM Solar go up and down completely randomly.
Pair Corralation between Aurskog Sparebank and EAM Solar
Assuming the 90 days trading horizon Aurskog Sparebank is expected to generate 0.03 times more return on investment than EAM Solar. However, Aurskog Sparebank is 29.84 times less risky than EAM Solar. It trades about -0.01 of its potential returns per unit of risk. EAM Solar ASA is currently generating about -0.05 per unit of risk. If you would invest 23,495 in Aurskog Sparebank on September 5, 2024 and sell it today you would lose (95.00) from holding Aurskog Sparebank or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurskog Sparebank vs. EAM Solar ASA
Performance |
| Timeline |
| Aurskog Sparebank |
| EAM Solar ASA |
Aurskog Sparebank and EAM Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurskog Sparebank and EAM Solar
The main advantage of trading using opposite Aurskog Sparebank and EAM Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurskog Sparebank position performs unexpectedly, EAM Solar 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 EAM Solar will offset losses from the drop in EAM Solar's long position.| Aurskog Sparebank vs. Holand og Setskog | Aurskog Sparebank vs. Elkem ASA | Aurskog Sparebank vs. Integrated Wind Solutions | Aurskog Sparebank vs. Vow ASA |
| EAM Solar vs. Aurskog Sparebank | EAM Solar vs. Sparebanken Ost | EAM Solar vs. Sunndal Sparebank | EAM Solar vs. SpareBank 1 stlandet |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |