Correlation Between Klaveness Combination and Lea Bank
Can any of the company-specific risk be diversified away by investing in both Klaveness Combination and Lea Bank 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 Klaveness Combination and Lea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klaveness Combination Carriers and Lea Bank ASA, you can compare the effects of market volatilities on Klaveness Combination and Lea Bank 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 Klaveness Combination with a short position of Lea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klaveness Combination and Lea Bank.
Diversification Opportunities for Klaveness Combination and Lea Bank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Klaveness and Lea is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Klaveness Combination Carriers and Lea Bank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lea Bank ASA and Klaveness Combination 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 Klaveness Combination Carriers are associated (or correlated) with Lea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lea Bank ASA has no effect on the direction of Klaveness Combination i.e., Klaveness Combination and Lea Bank go up and down completely randomly.
Pair Corralation between Klaveness Combination and Lea Bank
Assuming the 90 days trading horizon Klaveness Combination Carriers is expected to under-perform the Lea Bank. But the stock apears to be less risky and, when comparing its historical volatility, Klaveness Combination Carriers is 1.32 times less risky than Lea Bank. The stock trades about -0.08 of its potential returns per unit of risk. The Lea Bank ASA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Lea Bank ASA on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Lea Bank ASA or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Klaveness Combination Carriers vs. Lea Bank ASA
Performance |
| Timeline |
| Klaveness Combination |
| Lea Bank ASA |
Klaveness Combination and Lea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klaveness Combination and Lea Bank
The main advantage of trading using opposite Klaveness Combination and Lea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klaveness Combination position performs unexpectedly, Lea Bank 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 Lea Bank will offset losses from the drop in Lea Bank's long position.| Klaveness Combination vs. Nidaros Sparebank | Klaveness Combination vs. Odfjell Technology | Klaveness Combination vs. Morrow Bank ASA | Klaveness Combination vs. Lea Bank ASA |
| Lea Bank vs. Grong Sparebank | Lea Bank vs. Austevoll Seafood ASA | Lea Bank vs. SD Standard Drilling | Lea Bank vs. NorAm Drilling AS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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