Correlation Between Cloudberry Clean and Bien Sparebank
Can any of the company-specific risk be diversified away by investing in both Cloudberry Clean and Bien Sparebank 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 Cloudberry Clean and Bien Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloudberry Clean Energy and Bien Sparebank ASA, you can compare the effects of market volatilities on Cloudberry Clean and Bien Sparebank 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 Cloudberry Clean with a short position of Bien Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudberry Clean and Bien Sparebank.
Diversification Opportunities for Cloudberry Clean and Bien Sparebank
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cloudberry and Bien is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cloudberry Clean Energy and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA and Cloudberry Clean 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 Cloudberry Clean Energy are associated (or correlated) with Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of Cloudberry Clean i.e., Cloudberry Clean and Bien Sparebank go up and down completely randomly.
Pair Corralation between Cloudberry Clean and Bien Sparebank
Assuming the 90 days trading horizon Cloudberry Clean Energy is expected to under-perform the Bien Sparebank. In addition to that, Cloudberry Clean is 1.33 times more volatile than Bien Sparebank ASA. It trades about -0.14 of its total potential returns per unit of risk. Bien Sparebank ASA is currently generating about 0.28 per unit of volatility. If you would invest 10,900 in Bien Sparebank ASA on September 4, 2024 and sell it today you would earn a total of 1,300 from holding Bien Sparebank ASA or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cloudberry Clean Energy vs. Bien Sparebank ASA
Performance |
| Timeline |
| Cloudberry Clean Energy |
| Bien Sparebank ASA |
Cloudberry Clean and Bien Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudberry Clean and Bien Sparebank
The main advantage of trading using opposite Cloudberry Clean and Bien Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudberry Clean position performs unexpectedly, Bien Sparebank 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 Bien Sparebank will offset losses from the drop in Bien Sparebank's long position.| Cloudberry Clean vs. Bonheur | Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Cadeler As |
| Bien Sparebank vs. Sparebanken Ost | Bien Sparebank vs. Nordic Mining ASA | Bien Sparebank vs. Nidaros Sparebank | Bien Sparebank vs. Austevoll Seafood 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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