Correlation Between Itera ASA and Aasen Sparebank
Can any of the company-specific risk be diversified away by investing in both Itera ASA and Aasen 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 Itera ASA and Aasen Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itera ASA and Aasen Sparebank, you can compare the effects of market volatilities on Itera ASA and Aasen 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 Itera ASA with a short position of Aasen Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itera ASA and Aasen Sparebank.
Diversification Opportunities for Itera ASA and Aasen Sparebank
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Itera and Aasen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Itera ASA and Aasen Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aasen Sparebank and Itera 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 Itera ASA are associated (or correlated) with Aasen Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aasen Sparebank has no effect on the direction of Itera ASA i.e., Itera ASA and Aasen Sparebank go up and down completely randomly.
Pair Corralation between Itera ASA and Aasen Sparebank
Assuming the 90 days trading horizon Itera ASA is expected to under-perform the Aasen Sparebank. In addition to that, Itera ASA is 1.64 times more volatile than Aasen Sparebank. It trades about -0.05 of its total potential returns per unit of risk. Aasen Sparebank is currently generating about 0.04 per unit of volatility. If you would invest 11,098 in Aasen Sparebank on September 13, 2024 and sell it today you would earn a total of 802.00 from holding Aasen Sparebank or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itera ASA vs. Aasen Sparebank
Performance |
| Timeline |
| Itera ASA |
| Aasen Sparebank |
Itera ASA and Aasen Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itera ASA and Aasen Sparebank
The main advantage of trading using opposite Itera ASA and Aasen Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itera ASA position performs unexpectedly, Aasen 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 Aasen Sparebank will offset losses from the drop in Aasen Sparebank's long position.| Itera ASA vs. Dolphin Drilling AS | Itera ASA vs. Proximar Seafood AS | Itera ASA vs. Lery Seafood Group | Itera ASA vs. 5Th Planet Games |
| Aasen Sparebank vs. DnB ASA | Aasen Sparebank vs. Sparebank 1 SMN | Aasen Sparebank vs. Sparebanken Mre | Aasen Sparebank vs. Sparebank 1 Ostfold |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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