Correlation Between Jaeren Sparebank and Dolphin Drilling
Can any of the company-specific risk be diversified away by investing in both Jaeren Sparebank and Dolphin Drilling 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 Jaeren Sparebank and Dolphin Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaeren Sparebank and Dolphin Drilling AS, you can compare the effects of market volatilities on Jaeren Sparebank and Dolphin Drilling 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 Jaeren Sparebank with a short position of Dolphin Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaeren Sparebank and Dolphin Drilling.
Diversification Opportunities for Jaeren Sparebank and Dolphin Drilling
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jaeren and Dolphin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jaeren Sparebank and Dolphin Drilling AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Drilling and Jaeren 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 Jaeren Sparebank are associated (or correlated) with Dolphin Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Drilling has no effect on the direction of Jaeren Sparebank i.e., Jaeren Sparebank and Dolphin Drilling go up and down completely randomly.
Pair Corralation between Jaeren Sparebank and Dolphin Drilling
Assuming the 90 days trading horizon Jaeren Sparebank is expected to generate 0.18 times more return on investment than Dolphin Drilling. However, Jaeren Sparebank is 5.57 times less risky than Dolphin Drilling. It trades about 0.05 of its potential returns per unit of risk. Dolphin Drilling AS is currently generating about -0.09 per unit of risk. If you would invest 31,695 in Jaeren Sparebank on September 3, 2024 and sell it today you would earn a total of 195.00 from holding Jaeren Sparebank or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaeren Sparebank vs. Dolphin Drilling AS
Performance |
| Timeline |
| Jaeren Sparebank |
| Dolphin Drilling |
Jaeren Sparebank and Dolphin Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaeren Sparebank and Dolphin Drilling
The main advantage of trading using opposite Jaeren Sparebank and Dolphin Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaeren Sparebank position performs unexpectedly, Dolphin Drilling 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 Dolphin Drilling will offset losses from the drop in Dolphin Drilling's long position.| Jaeren Sparebank vs. Sparebank 1 SMN | Jaeren Sparebank vs. Skue Sparebank | Jaeren Sparebank vs. Instabank ASA | Jaeren Sparebank vs. Waste Plastic Upcycling |
| Dolphin Drilling vs. Deep Value Driller | Dolphin Drilling vs. Odfjell Drilling | Dolphin Drilling vs. NorAm Drilling AS | Dolphin Drilling vs. SD Standard Drilling |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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