Correlation Between Gjensidige Forsikring and Helgeland Sparebank
Can any of the company-specific risk be diversified away by investing in both Gjensidige Forsikring and Helgeland 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 Gjensidige Forsikring and Helgeland Sparebank 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 Helgeland Sparebank, you can compare the effects of market volatilities on Gjensidige Forsikring and Helgeland 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 Gjensidige Forsikring with a short position of Helgeland Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gjensidige Forsikring and Helgeland Sparebank.
Diversification Opportunities for Gjensidige Forsikring and Helgeland Sparebank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gjensidige and Helgeland is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gjensidige Forsikring ASA and Helgeland Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helgeland Sparebank 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 Helgeland Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helgeland Sparebank has no effect on the direction of Gjensidige Forsikring i.e., Gjensidige Forsikring and Helgeland Sparebank go up and down completely randomly.
Pair Corralation between Gjensidige Forsikring and Helgeland Sparebank
Assuming the 90 days trading horizon Gjensidige Forsikring ASA is expected to generate 0.85 times more return on investment than Helgeland Sparebank. However, Gjensidige Forsikring ASA is 1.17 times less risky than Helgeland Sparebank. It trades about -0.03 of its potential returns per unit of risk. Helgeland Sparebank is currently generating about -0.08 per unit of risk. If you would invest 19,850 in Gjensidige Forsikring ASA on September 1, 2024 and sell it today you would lose (210.00) from holding Gjensidige Forsikring ASA or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gjensidige Forsikring ASA vs. Helgeland Sparebank
Performance |
| Timeline |
| Gjensidige Forsikring ASA |
| Helgeland Sparebank |
Gjensidige Forsikring and Helgeland Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gjensidige Forsikring and Helgeland Sparebank
The main advantage of trading using opposite Gjensidige Forsikring and Helgeland Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gjensidige Forsikring position performs unexpectedly, Helgeland 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 Helgeland Sparebank will offset losses from the drop in Helgeland Sparebank's long position.| Gjensidige Forsikring vs. DnB ASA | Gjensidige Forsikring vs. Storebrand ASA | Gjensidige Forsikring vs. Orkla ASA | Gjensidige Forsikring vs. Telenor ASA |
| Helgeland Sparebank vs. DnB ASA | Helgeland Sparebank vs. Gjensidige Forsikring ASA | Helgeland Sparebank vs. Orkla ASA | Helgeland Sparebank vs. Telenor 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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