Correlation Between Klaveness Combination and Skue Sparebank
Can any of the company-specific risk be diversified away by investing in both Klaveness Combination and Skue Sparebank 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 Skue Sparebank 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 Skue Sparebank, you can compare the effects of market volatilities on Klaveness Combination and Skue Sparebank 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 Skue Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klaveness Combination and Skue Sparebank.
Diversification Opportunities for Klaveness Combination and Skue Sparebank
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Klaveness and Skue is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Klaveness Combination Carriers and Skue Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skue Sparebank 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 Skue Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skue Sparebank has no effect on the direction of Klaveness Combination i.e., Klaveness Combination and Skue Sparebank go up and down completely randomly.
Pair Corralation between Klaveness Combination and Skue Sparebank
Assuming the 90 days trading horizon Klaveness Combination Carriers is expected to generate 1.57 times more return on investment than Skue Sparebank. However, Klaveness Combination is 1.57 times more volatile than Skue Sparebank. It trades about 0.06 of its potential returns per unit of risk. Skue Sparebank is currently generating about 0.06 per unit of risk. If you would invest 4,679 in Klaveness Combination Carriers on September 3, 2024 and sell it today you would earn a total of 3,231 from holding Klaveness Combination Carriers or generate 69.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klaveness Combination Carriers vs. Skue Sparebank
Performance |
| Timeline |
| Klaveness Combination |
| Skue Sparebank |
Klaveness Combination and Skue Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klaveness Combination and Skue Sparebank
The main advantage of trading using opposite Klaveness Combination and Skue Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klaveness Combination position performs unexpectedly, Skue Sparebank 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 Skue Sparebank will offset losses from the drop in Skue Sparebank's long position.| Klaveness Combination vs. Grong Sparebank | Klaveness Combination vs. Awilco Drilling PLC | Klaveness Combination vs. Lea Bank ASA | Klaveness Combination vs. Polaris Media |
| Skue Sparebank vs. Melhus Sparebank | Skue Sparebank vs. Sparebanken Ost | Skue Sparebank vs. Sparebanken Sor |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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