Correlation Between COSTCO WHOLESALE and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both COSTCO WHOLESALE and Schibsted ASA 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 COSTCO WHOLESALE and Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSTCO WHOLESALE CDR and Schibsted ASA B, you can compare the effects of market volatilities on COSTCO WHOLESALE and Schibsted ASA 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 COSTCO WHOLESALE with a short position of Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSTCO WHOLESALE and Schibsted ASA.
Diversification Opportunities for COSTCO WHOLESALE and Schibsted ASA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSTCO and Schibsted is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding COSTCO WHOLESALE CDR and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B and COSTCO WHOLESALE 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 COSTCO WHOLESALE CDR are associated (or correlated) with Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of COSTCO WHOLESALE i.e., COSTCO WHOLESALE and Schibsted ASA go up and down completely randomly.
Pair Corralation between COSTCO WHOLESALE and Schibsted ASA
Assuming the 90 days trading horizon COSTCO WHOLESALE is expected to generate 1.72 times less return on investment than Schibsted ASA. But when comparing it to its historical volatility, COSTCO WHOLESALE CDR is 2.11 times less risky than Schibsted ASA. It trades about 0.09 of its potential returns per unit of risk. Schibsted ASA B is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,074 in Schibsted ASA B on October 19, 2024 and sell it today you would earn a total of 1,652 from holding Schibsted ASA B or generate 153.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSTCO WHOLESALE CDR vs. Schibsted ASA B
Performance |
| Timeline |
| COSTCO WHOLESALE CDR |
| Schibsted ASA B |
COSTCO WHOLESALE and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSTCO WHOLESALE and Schibsted ASA
The main advantage of trading using opposite COSTCO WHOLESALE and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSTCO WHOLESALE position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| COSTCO WHOLESALE vs. Liberty Broadband | COSTCO WHOLESALE vs. Broadwind | COSTCO WHOLESALE vs. GOLD ROAD RES | COSTCO WHOLESALE vs. Sixt Leasing SE |
| Schibsted ASA vs. COSTCO WHOLESALE CDR | Schibsted ASA vs. Charter Communications | Schibsted ASA vs. NURAN WIRELESS INC | Schibsted ASA vs. Costco Wholesale Corp |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |