Correlation Between Klaveness Combination and Sparebanken Ost
Can any of the company-specific risk be diversified away by investing in both Klaveness Combination and Sparebanken Ost 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 Sparebanken Ost 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 Sparebanken Ost, you can compare the effects of market volatilities on Klaveness Combination and Sparebanken Ost 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 Sparebanken Ost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klaveness Combination and Sparebanken Ost.
Diversification Opportunities for Klaveness Combination and Sparebanken Ost
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Klaveness and Sparebanken is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Klaveness Combination Carriers and Sparebanken Ost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebanken Ost 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 Sparebanken Ost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebanken Ost has no effect on the direction of Klaveness Combination i.e., Klaveness Combination and Sparebanken Ost go up and down completely randomly.
Pair Corralation between Klaveness Combination and Sparebanken Ost
Assuming the 90 days trading horizon Klaveness Combination Carriers is expected to under-perform the Sparebanken Ost. In addition to that, Klaveness Combination is 1.27 times more volatile than Sparebanken Ost. It trades about -0.08 of its total potential returns per unit of risk. Sparebanken Ost is currently generating about 0.1 per unit of volatility. If you would invest 5,550 in Sparebanken Ost on September 1, 2024 and sell it today you would earn a total of 960.00 from holding Sparebanken Ost or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Klaveness Combination Carriers vs. Sparebanken Ost
Performance |
| Timeline |
| Klaveness Combination |
| Sparebanken Ost |
Klaveness Combination and Sparebanken Ost Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klaveness Combination and Sparebanken Ost
The main advantage of trading using opposite Klaveness Combination and Sparebanken Ost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klaveness Combination position performs unexpectedly, Sparebanken Ost 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 Sparebanken Ost will offset losses from the drop in Sparebanken Ost'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 |
| Sparebanken Ost vs. Shelf Drilling | Sparebanken Ost vs. Odfjell Drilling | Sparebanken Ost vs. Nordic Semiconductor ASA | Sparebanken Ost vs. Lery Seafood 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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