Correlation Between Instabank ASA and Bien Sparebank
Can any of the company-specific risk be diversified away by investing in both Instabank ASA and Bien 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 Instabank ASA and Bien Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Instabank ASA and Bien Sparebank ASA, you can compare the effects of market volatilities on Instabank ASA and Bien 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 Instabank ASA with a short position of Bien Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Instabank ASA and Bien Sparebank.
Diversification Opportunities for Instabank ASA and Bien Sparebank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Instabank and Bien is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Instabank ASA and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA and Instabank 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 Instabank ASA are associated (or correlated) with Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of Instabank ASA i.e., Instabank ASA and Bien Sparebank go up and down completely randomly.
Pair Corralation between Instabank ASA and Bien Sparebank
Assuming the 90 days trading horizon Instabank ASA is expected to generate 1.68 times less return on investment than Bien Sparebank. In addition to that, Instabank ASA is 1.52 times more volatile than Bien Sparebank ASA. It trades about 0.04 of its total potential returns per unit of risk. Bien Sparebank ASA is currently generating about 0.09 per unit of volatility. If you would invest 8,178 in Bien Sparebank ASA on September 12, 2024 and sell it today you would earn a total of 4,222 from holding Bien Sparebank ASA or generate 51.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Instabank ASA vs. Bien Sparebank ASA
Performance |
| Timeline |
| Instabank ASA |
| Bien Sparebank ASA |
Instabank ASA and Bien Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Instabank ASA and Bien Sparebank
The main advantage of trading using opposite Instabank ASA and Bien Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instabank ASA position performs unexpectedly, Bien 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 Bien Sparebank will offset losses from the drop in Bien Sparebank's long position.| Instabank ASA vs. DnB ASA | Instabank ASA vs. Sparebank 1 SMN | Instabank ASA vs. Sparebanken Mre | Instabank ASA vs. Sparebank 1 Ostfold |
| Bien Sparebank vs. Lea Bank ASA | Bien Sparebank vs. Romerike Sparebank | Bien Sparebank vs. Kongsberg Gruppen ASA | Bien Sparebank vs. Napatech 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |