Correlation Between Kongsberg Gruppen and Everfuel
Can any of the company-specific risk be diversified away by investing in both Kongsberg Gruppen and Everfuel 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 Kongsberg Gruppen and Everfuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kongsberg Gruppen ASA and Everfuel AS, you can compare the effects of market volatilities on Kongsberg Gruppen and Everfuel 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 Kongsberg Gruppen with a short position of Everfuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kongsberg Gruppen and Everfuel.
Diversification Opportunities for Kongsberg Gruppen and Everfuel
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kongsberg and Everfuel is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kongsberg Gruppen ASA and Everfuel AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everfuel AS and Kongsberg Gruppen 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 Kongsberg Gruppen ASA are associated (or correlated) with Everfuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everfuel AS has no effect on the direction of Kongsberg Gruppen i.e., Kongsberg Gruppen and Everfuel go up and down completely randomly.
Pair Corralation between Kongsberg Gruppen and Everfuel
If you would invest 1,276 in Everfuel AS on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Everfuel AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.89% |
| Values | Daily Returns |
Kongsberg Gruppen ASA vs. Everfuel AS
Performance |
| Timeline |
| Kongsberg Gruppen ASA |
| Everfuel AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Kongsberg Gruppen and Everfuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kongsberg Gruppen and Everfuel
The main advantage of trading using opposite Kongsberg Gruppen and Everfuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kongsberg Gruppen position performs unexpectedly, Everfuel 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 Everfuel will offset losses from the drop in Everfuel's long position.| Kongsberg Gruppen vs. DnB ASA | Kongsberg Gruppen vs. Orkla ASA | Kongsberg Gruppen vs. Storebrand ASA | Kongsberg Gruppen vs. Yara International 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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