Correlation Between Jaeren Sparebank and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Jaeren Sparebank and Proximar Seafood 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 Proximar Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaeren Sparebank and Proximar Seafood AS, you can compare the effects of market volatilities on Jaeren Sparebank and Proximar Seafood 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 Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaeren Sparebank and Proximar Seafood.
Diversification Opportunities for Jaeren Sparebank and Proximar Seafood
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaeren and Proximar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jaeren Sparebank and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood 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 Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Jaeren Sparebank i.e., Jaeren Sparebank and Proximar Seafood go up and down completely randomly.
Pair Corralation between Jaeren Sparebank and Proximar Seafood
Assuming the 90 days trading horizon Jaeren Sparebank is expected to generate 0.22 times more return on investment than Proximar Seafood. However, Jaeren Sparebank is 4.57 times less risky than Proximar Seafood. It trades about 0.05 of its potential returns per unit of risk. Proximar Seafood AS is currently generating about -0.07 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaeren Sparebank vs. Proximar Seafood AS
Performance |
| Timeline |
| Jaeren Sparebank |
| Proximar Seafood |
Jaeren Sparebank and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaeren Sparebank and Proximar Seafood
The main advantage of trading using opposite Jaeren Sparebank and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaeren Sparebank position performs unexpectedly, Proximar Seafood 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 Proximar Seafood will offset losses from the drop in Proximar Seafood'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 |
| Proximar Seafood vs. Odfjell Drilling | Proximar Seafood vs. SD Standard Drilling | Proximar Seafood vs. Jaeren Sparebank | Proximar Seafood vs. Gaming Innovation Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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