Correlation Between Jaeren Sparebank and Idex ASA
Can any of the company-specific risk be diversified away by investing in both Jaeren Sparebank and Idex ASA 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 Idex ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaeren Sparebank and Idex ASA, you can compare the effects of market volatilities on Jaeren Sparebank and Idex ASA 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 Idex ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaeren Sparebank and Idex ASA.
Diversification Opportunities for Jaeren Sparebank and Idex ASA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jaeren and Idex is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jaeren Sparebank and Idex ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idex ASA 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 Idex ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idex ASA has no effect on the direction of Jaeren Sparebank i.e., Jaeren Sparebank and Idex ASA go up and down completely randomly.
Pair Corralation between Jaeren Sparebank and Idex ASA
Assuming the 90 days trading horizon Jaeren Sparebank is expected to generate 0.12 times more return on investment than Idex ASA. However, Jaeren Sparebank is 8.3 times less risky than Idex ASA. It trades about -0.08 of its potential returns per unit of risk. Idex ASA is currently generating about -0.17 per unit of risk. If you would invest 31,985 in Jaeren Sparebank on August 28, 2024 and sell it today you would lose (485.00) from holding Jaeren Sparebank or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaeren Sparebank vs. Idex ASA
Performance |
| Timeline |
| Jaeren Sparebank |
| Idex ASA |
Jaeren Sparebank and Idex ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaeren Sparebank and Idex ASA
The main advantage of trading using opposite Jaeren Sparebank and Idex ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaeren Sparebank position performs unexpectedly, Idex ASA 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 Idex ASA will offset losses from the drop in Idex ASA's long position.| Jaeren Sparebank vs. Melhus Sparebank | Jaeren Sparebank vs. Romerike Sparebank | Jaeren Sparebank vs. Odfjell Technology | Jaeren Sparebank vs. Nidaros Sparebank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |