Correlation Between Jaeren Sparebank and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Jaeren Sparebank and Schibsted 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 Schibsted 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 Schibsted ASA B, you can compare the effects of market volatilities on Jaeren Sparebank and Schibsted 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaeren Sparebank and Schibsted ASA.
Diversification Opportunities for Jaeren Sparebank and Schibsted ASA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jaeren and Schibsted is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jaeren Sparebank and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Jaeren Sparebank i.e., Jaeren Sparebank and Schibsted ASA go up and down completely randomly.
Pair Corralation between Jaeren Sparebank and Schibsted ASA
Assuming the 90 days trading horizon Jaeren Sparebank is expected to generate 0.31 times more return on investment than Schibsted ASA. However, Jaeren Sparebank is 3.22 times less risky than Schibsted ASA. It trades about 0.08 of its potential returns per unit of risk. Schibsted ASA B is currently generating about 0.0 per unit of risk. If you would invest 34,027 in Jaeren Sparebank on January 24, 2025 and sell it today you would earn a total of 473.00 from holding Jaeren Sparebank or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaeren Sparebank vs. Schibsted ASA B
Performance |
| Timeline |
| Jaeren Sparebank |
| Schibsted ASA B |
Jaeren Sparebank and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaeren Sparebank and Schibsted ASA
The main advantage of trading using opposite Jaeren Sparebank and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaeren Sparebank position performs unexpectedly, Schibsted 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Jaeren Sparebank vs. Helgeland Sparebank | Jaeren Sparebank vs. Nidaros Sparebank | Jaeren Sparebank vs. BW Offshore | Jaeren Sparebank vs. Grieg Seafood ASA |
| Schibsted ASA vs. Kid ASA | Schibsted ASA vs. Byggma | Schibsted ASA vs. American Shipping | Schibsted ASA vs. Kitron ASA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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