Correlation Between Irish Continental and KLP Aksje
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By analyzing existing cross correlation between Irish Continental Group and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on Irish Continental and KLP Aksje 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 Irish Continental with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Irish Continental and KLP Aksje.
Diversification Opportunities for Irish Continental and KLP Aksje
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Irish and KLP is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Irish Continental Group and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende and Irish Continental 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 Irish Continental Group are associated (or correlated) with KLP Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of Irish Continental i.e., Irish Continental and KLP Aksje go up and down completely randomly.
Pair Corralation between Irish Continental and KLP Aksje
Assuming the 90 days trading horizon Irish Continental Group is expected to generate 2.64 times more return on investment than KLP Aksje. However, Irish Continental is 2.64 times more volatile than KLP Aksje Fremvoksende. It trades about 0.07 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.05 per unit of risk. If you would invest 540.00 in Irish Continental Group on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Irish Continental Group or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Irish Continental Group vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| Irish Continental |
| KLP Aksje Fremvoksende |
Irish Continental and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Irish Continental and KLP Aksje
The main advantage of trading using opposite Irish Continental and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Irish Continental position performs unexpectedly, KLP Aksje 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 KLP Aksje will offset losses from the drop in KLP Aksje's long position.| Irish Continental vs. Dalata Hotel Group | Irish Continental vs. Kingspan Group plc | Irish Continental vs. Glanbia PLC | Irish Continental vs. KLP Aksje Fremvoksende |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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