Correlation Between Europris ASA and ABG Sundal
Can any of the company-specific risk be diversified away by investing in both Europris ASA and ABG Sundal 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 Europris ASA and ABG Sundal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europris ASA and ABG Sundal Collier, you can compare the effects of market volatilities on Europris ASA and ABG Sundal 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 Europris ASA with a short position of ABG Sundal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europris ASA and ABG Sundal.
Diversification Opportunities for Europris ASA and ABG Sundal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Europris and ABG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Europris ASA and ABG Sundal Collier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABG Sundal Collier and Europris ASA 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 Europris ASA are associated (or correlated) with ABG Sundal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABG Sundal Collier has no effect on the direction of Europris ASA i.e., Europris ASA and ABG Sundal go up and down completely randomly.
Pair Corralation between Europris ASA and ABG Sundal
If you would invest 6,495 in Europris ASA on September 18, 2024 and sell it today you would earn a total of 730.00 from holding Europris ASA or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Europris ASA vs. ABG Sundal Collier
Performance |
| Timeline |
| Europris ASA |
| ABG Sundal Collier |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Europris ASA and ABG Sundal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europris ASA and ABG Sundal
The main advantage of trading using opposite Europris ASA and ABG Sundal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europris ASA position performs unexpectedly, ABG Sundal 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 ABG Sundal will offset losses from the drop in ABG Sundal's long position.| Europris ASA vs. Storebrand ASA | Europris ASA vs. XXL ASA | Europris ASA vs. Orkla ASA | Europris ASA vs. DnB ASA |
| ABG Sundal vs. Kid ASA | ABG Sundal vs. Selvaag Bolig ASA | ABG Sundal vs. Elkem ASA | ABG Sundal vs. Europris 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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