Correlation Between Kraft Bank and Oslo Exchange
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By analyzing existing cross correlation between Kraft Bank Asa and Oslo Exchange Mutual, you can compare the effects of market volatilities on Kraft Bank and Oslo Exchange 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 Kraft Bank with a short position of Oslo Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Bank and Oslo Exchange.
Diversification Opportunities for Kraft Bank and Oslo Exchange
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and Oslo is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Bank Asa and Oslo Exchange Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oslo Exchange Mutual and Kraft Bank 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 Kraft Bank Asa are associated (or correlated) with Oslo Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oslo Exchange Mutual has no effect on the direction of Kraft Bank i.e., Kraft Bank and Oslo Exchange go up and down completely randomly.
Pair Corralation between Kraft Bank and Oslo Exchange
Assuming the 90 days trading horizon Kraft Bank Asa is expected to under-perform the Oslo Exchange. In addition to that, Kraft Bank is 3.76 times more volatile than Oslo Exchange Mutual. It trades about -0.05 of its total potential returns per unit of risk. Oslo Exchange Mutual is currently generating about 0.11 per unit of volatility. If you would invest 138,094 in Oslo Exchange Mutual on September 12, 2024 and sell it today you would earn a total of 2,238 from holding Oslo Exchange Mutual or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Bank Asa vs. Oslo Exchange Mutual
Performance |
| Timeline |
Kraft Bank and Oslo Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Kraft Bank Asa
Pair trading matchups for Kraft Bank
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Pair Trading with Kraft Bank and Oslo Exchange
The main advantage of trading using opposite Kraft Bank and Oslo Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Bank position performs unexpectedly, Oslo Exchange 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 Oslo Exchange will offset losses from the drop in Oslo Exchange's long position.| Kraft Bank vs. DnB ASA | Kraft Bank vs. Sparebank 1 SMN | Kraft Bank vs. Sparebanken Mre | Kraft Bank vs. Sparebank 1 Ostfold |
| Oslo Exchange vs. Kraft Bank Asa | Oslo Exchange vs. Lery Seafood Group | Oslo Exchange vs. Dolphin Drilling AS | Oslo Exchange vs. 5Th Planet Games |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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