Correlation Between Bien Sparebank and Cloudberry Clean
Can any of the company-specific risk be diversified away by investing in both Bien Sparebank and Cloudberry Clean 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 Bien Sparebank and Cloudberry Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bien Sparebank ASA and Cloudberry Clean Energy, you can compare the effects of market volatilities on Bien Sparebank and Cloudberry Clean 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 Bien Sparebank with a short position of Cloudberry Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bien Sparebank and Cloudberry Clean.
Diversification Opportunities for Bien Sparebank and Cloudberry Clean
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bien and Cloudberry is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bien Sparebank ASA and Cloudberry Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudberry Clean Energy and Bien 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 Bien Sparebank ASA are associated (or correlated) with Cloudberry Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudberry Clean Energy has no effect on the direction of Bien Sparebank i.e., Bien Sparebank and Cloudberry Clean go up and down completely randomly.
Pair Corralation between Bien Sparebank and Cloudberry Clean
Assuming the 90 days trading horizon Bien Sparebank ASA is expected to generate 0.6 times more return on investment than Cloudberry Clean. However, Bien Sparebank ASA is 1.66 times less risky than Cloudberry Clean. It trades about 0.07 of its potential returns per unit of risk. Cloudberry Clean Energy is currently generating about 0.01 per unit of risk. If you would invest 8,770 in Bien Sparebank ASA on November 2, 2024 and sell it today you would earn a total of 4,230 from holding Bien Sparebank ASA or generate 48.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bien Sparebank ASA vs. Cloudberry Clean Energy
Performance |
| Timeline |
| Bien Sparebank ASA |
| Cloudberry Clean Energy |
Bien Sparebank and Cloudberry Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bien Sparebank and Cloudberry Clean
The main advantage of trading using opposite Bien Sparebank and Cloudberry Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bien Sparebank position performs unexpectedly, Cloudberry Clean 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 Cloudberry Clean will offset losses from the drop in Cloudberry Clean's long position.| Bien Sparebank vs. SD Standard Drilling | Bien Sparebank vs. Nordhealth AS | Bien Sparebank vs. Eidesvik Offshore ASA | Bien Sparebank vs. Odfjell Technology |
| Cloudberry Clean vs. Bonheur | Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Cadeler As |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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