Correlation Between Grupo Financiero and Aker ASA
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and Aker 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 Grupo Financiero and Aker ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Inbursa and Aker ASA, you can compare the effects of market volatilities on Grupo Financiero and Aker 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 Grupo Financiero with a short position of Aker ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Aker ASA.
Diversification Opportunities for Grupo Financiero and Aker ASA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Aker is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa and Aker ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker ASA and Grupo Financiero 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 Grupo Financiero Inbursa are associated (or correlated) with Aker ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker ASA has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Aker ASA go up and down completely randomly.
Pair Corralation between Grupo Financiero and Aker ASA
If you would invest 212.00 in Grupo Financiero Inbursa on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Grupo Financiero Inbursa or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. Aker ASA
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| Aker ASA |
Grupo Financiero and Aker ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Aker ASA
The main advantage of trading using opposite Grupo Financiero and Aker ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Aker 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 Aker ASA will offset losses from the drop in Aker ASA's long position.| Grupo Financiero vs. National Bank of | Grupo Financiero vs. Absa Group Limited | Grupo Financiero vs. Aozora Bank Ltd | Grupo Financiero vs. Andover Bancorp |
| Aker ASA vs. Xunlei Ltd Adr | Aker ASA vs. Entravision Communications | Aker ASA vs. Deluxe | Aker ASA vs. Ispire Technology Common |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |