Correlation Between Bien Sparebank and HydrogenPro
Can any of the company-specific risk be diversified away by investing in both Bien Sparebank and HydrogenPro 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 HydrogenPro 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 HydrogenPro AS, you can compare the effects of market volatilities on Bien Sparebank and HydrogenPro 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 HydrogenPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bien Sparebank and HydrogenPro.
Diversification Opportunities for Bien Sparebank and HydrogenPro
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bien and HydrogenPro is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bien Sparebank ASA and HydrogenPro AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HydrogenPro AS 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 HydrogenPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HydrogenPro AS has no effect on the direction of Bien Sparebank i.e., Bien Sparebank and HydrogenPro go up and down completely randomly.
Pair Corralation between Bien Sparebank and HydrogenPro
Assuming the 90 days trading horizon Bien Sparebank ASA is expected to generate 0.32 times more return on investment than HydrogenPro. However, Bien Sparebank ASA is 3.13 times less risky than HydrogenPro. It trades about 0.06 of its potential returns per unit of risk. HydrogenPro AS is currently generating about -0.07 per unit of risk. If you would invest 8,883 in Bien Sparebank ASA on September 14, 2024 and sell it today you would earn a total of 3,617 from holding Bien Sparebank ASA or generate 40.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bien Sparebank ASA vs. HydrogenPro AS
Performance |
| Timeline |
| Bien Sparebank ASA |
| HydrogenPro AS |
Bien Sparebank and HydrogenPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bien Sparebank and HydrogenPro
The main advantage of trading using opposite Bien Sparebank and HydrogenPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bien Sparebank position performs unexpectedly, HydrogenPro 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 HydrogenPro will offset losses from the drop in HydrogenPro's long position.| Bien Sparebank vs. Lea Bank ASA | Bien Sparebank vs. Romerike Sparebank | Bien Sparebank vs. Kongsberg Gruppen ASA | Bien Sparebank vs. Napatech AS |
| HydrogenPro vs. Vow Green Metals | HydrogenPro vs. Clean Seas Seafood | HydrogenPro vs. Bien Sparebank ASA | HydrogenPro vs. Melhus Sparebank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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