Correlation Between Grong Sparebank and Hexagon Purus
Can any of the company-specific risk be diversified away by investing in both Grong Sparebank and Hexagon Purus 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 Grong Sparebank and Hexagon Purus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grong Sparebank and Hexagon Purus As, you can compare the effects of market volatilities on Grong Sparebank and Hexagon Purus 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 Grong Sparebank with a short position of Hexagon Purus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grong Sparebank and Hexagon Purus.
Diversification Opportunities for Grong Sparebank and Hexagon Purus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grong and Hexagon is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grong Sparebank and Hexagon Purus As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon Purus As and Grong Sparebank 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 Grong Sparebank are associated (or correlated) with Hexagon Purus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon Purus As has no effect on the direction of Grong Sparebank i.e., Grong Sparebank and Hexagon Purus go up and down completely randomly.
Pair Corralation between Grong Sparebank and Hexagon Purus
Assuming the 90 days trading horizon Grong Sparebank is expected to generate 0.25 times more return on investment than Hexagon Purus. However, Grong Sparebank is 3.96 times less risky than Hexagon Purus. It trades about 0.06 of its potential returns per unit of risk. Hexagon Purus As is currently generating about -0.08 per unit of risk. If you would invest 14,000 in Grong Sparebank on September 5, 2024 and sell it today you would earn a total of 1,180 from holding Grong Sparebank or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grong Sparebank vs. Hexagon Purus As
Performance |
| Timeline |
| Grong Sparebank |
| Hexagon Purus As |
Grong Sparebank and Hexagon Purus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grong Sparebank and Hexagon Purus
The main advantage of trading using opposite Grong Sparebank and Hexagon Purus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grong Sparebank position performs unexpectedly, Hexagon Purus 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 Hexagon Purus will offset losses from the drop in Hexagon Purus' long position.| Grong Sparebank vs. DnB ASA | Grong Sparebank vs. Sparebank 1 SR | Grong Sparebank vs. Sparebank 1 SMN | Grong Sparebank vs. Sparebanken Mre |
| Hexagon Purus vs. Scana ASA | Hexagon Purus vs. Sogn Sparebank | Hexagon Purus vs. Veidekke ASA | Hexagon Purus vs. ECIT AS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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