Correlation Between Gjensidige Forsikring and Green Minerals
Can any of the company-specific risk be diversified away by investing in both Gjensidige Forsikring and Green Minerals 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 Gjensidige Forsikring and Green Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gjensidige Forsikring ASA and Green Minerals AS, you can compare the effects of market volatilities on Gjensidige Forsikring and Green Minerals 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 Gjensidige Forsikring with a short position of Green Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gjensidige Forsikring and Green Minerals.
Diversification Opportunities for Gjensidige Forsikring and Green Minerals
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gjensidige and Green is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gjensidige Forsikring ASA and Green Minerals AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Minerals AS and Gjensidige Forsikring 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 Gjensidige Forsikring ASA are associated (or correlated) with Green Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Minerals AS has no effect on the direction of Gjensidige Forsikring i.e., Gjensidige Forsikring and Green Minerals go up and down completely randomly.
Pair Corralation between Gjensidige Forsikring and Green Minerals
Assuming the 90 days trading horizon Gjensidige Forsikring ASA is expected to generate 0.12 times more return on investment than Green Minerals. However, Gjensidige Forsikring ASA is 8.08 times less risky than Green Minerals. It trades about 0.22 of its potential returns per unit of risk. Green Minerals AS is currently generating about -0.16 per unit of risk. If you would invest 19,550 in Gjensidige Forsikring ASA on October 23, 2024 and sell it today you would earn a total of 1,390 from holding Gjensidige Forsikring ASA or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gjensidige Forsikring ASA vs. Green Minerals AS
Performance |
| Timeline |
| Gjensidige Forsikring ASA |
| Green Minerals AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gjensidige Forsikring and Green Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gjensidige Forsikring and Green Minerals
The main advantage of trading using opposite Gjensidige Forsikring and Green Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gjensidige Forsikring position performs unexpectedly, Green Minerals 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 Green Minerals will offset losses from the drop in Green Minerals' long position.| Gjensidige Forsikring vs. DnB ASA | Gjensidige Forsikring vs. Storebrand ASA | Gjensidige Forsikring vs. Orkla ASA | Gjensidige Forsikring vs. Telenor ASA |
| Green Minerals vs. Sogn Sparebank | Green Minerals vs. Nidaros Sparebank | Green Minerals vs. Pareto Bank ASA | Green Minerals vs. Kraft Bank 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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