Correlation Between Bank of Ireland and KLP AksjeGlobal
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By analyzing existing cross correlation between Bank of Ireland and KLP AksjeGlobal Flerfaktor, you can compare the effects of market volatilities on Bank of Ireland and KLP AksjeGlobal 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 Bank of Ireland with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Ireland and KLP AksjeGlobal.
Diversification Opportunities for Bank of Ireland and KLP AksjeGlobal
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and KLP is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ireland and KLP AksjeGlobal Flerfaktor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Fler and Bank of Ireland 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 Bank of Ireland are associated (or correlated) with KLP AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Fler has no effect on the direction of Bank of Ireland i.e., Bank of Ireland and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between Bank of Ireland and KLP AksjeGlobal
Assuming the 90 days trading horizon Bank of Ireland is expected to generate 4.96 times more return on investment than KLP AksjeGlobal. However, Bank of Ireland is 4.96 times more volatile than KLP AksjeGlobal Flerfaktor. It trades about 0.32 of its potential returns per unit of risk. KLP AksjeGlobal Flerfaktor is currently generating about 0.06 per unit of risk. If you would invest 967.00 in Bank of Ireland on November 29, 2024 and sell it today you would earn a total of 157.00 from holding Bank of Ireland or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of Ireland vs. KLP AksjeGlobal Flerfaktor
Performance |
| Timeline |
| Bank of Ireland |
| KLP AksjeGlobal Fler |
Bank of Ireland and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Ireland and KLP AksjeGlobal
The main advantage of trading using opposite Bank of Ireland and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Ireland position performs unexpectedly, KLP AksjeGlobal 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 KLP AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.| Bank of Ireland vs. AIB Group PLC | Bank of Ireland vs. Kingspan Group plc | Bank of Ireland vs. Glanbia PLC | Bank of Ireland vs. Ryanair Holdings plc |
| KLP AksjeGlobal vs. DNB Global Indeks | KLP AksjeGlobal vs. KLP AksjeNorge Indeks | KLP AksjeGlobal vs. Storebrand Global Solutions | KLP AksjeGlobal vs. Nordea 1 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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