Correlation Between Kongsberg Gruppen and Sparebank
Can any of the company-specific risk be diversified away by investing in both Kongsberg Gruppen and 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 Kongsberg Gruppen and Sparebank 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 Sparebank 1 Nord Norge, you can compare the effects of market volatilities on Kongsberg Gruppen and 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 Kongsberg Gruppen with a short position of Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kongsberg Gruppen and Sparebank.
Diversification Opportunities for Kongsberg Gruppen and Sparebank
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kongsberg and Sparebank is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kongsberg Gruppen ASA and Sparebank 1 Nord Norge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 Nord 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 Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 Nord has no effect on the direction of Kongsberg Gruppen i.e., Kongsberg Gruppen and Sparebank go up and down completely randomly.
Pair Corralation between Kongsberg Gruppen and Sparebank
Assuming the 90 days trading horizon Kongsberg Gruppen ASA is expected to generate 9.68 times more return on investment than Sparebank. However, Kongsberg Gruppen is 9.68 times more volatile than Sparebank 1 Nord Norge. It trades about 0.2 of its potential returns per unit of risk. Sparebank 1 Nord Norge is currently generating about 0.23 per unit of risk. If you would invest 133,800 in Kongsberg Gruppen ASA on December 4, 2024 and sell it today you would earn a total of 24,400 from holding Kongsberg Gruppen ASA or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kongsberg Gruppen ASA vs. Sparebank 1 Nord Norge
Performance |
| Timeline |
| Kongsberg Gruppen ASA |
| Sparebank 1 Nord |
Kongsberg Gruppen and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kongsberg Gruppen and Sparebank
The main advantage of trading using opposite Kongsberg Gruppen and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kongsberg Gruppen position performs unexpectedly, 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 Sparebank will offset losses from the drop in Sparebank's long position.| Kongsberg Gruppen vs. DnB ASA | Kongsberg Gruppen vs. Orkla ASA | Kongsberg Gruppen vs. Storebrand ASA | Kongsberg Gruppen vs. Yara International ASA |
| Sparebank vs. Sparebank 1 SMN | Sparebank vs. Sparebanken Vest | Sparebank vs. Storebrand ASA | Sparebank vs. SpareBank 1 stlandet |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |