Correlation Between Lea Bank and Oslo Exchange
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By analyzing existing cross correlation between Lea Bank ASA and Oslo Exchange Mutual, you can compare the effects of market volatilities on Lea 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 Lea Bank with a short position of Oslo Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lea Bank and Oslo Exchange.
Diversification Opportunities for Lea Bank and Oslo Exchange
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lea and Oslo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lea 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 Lea 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 Lea 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 Lea Bank i.e., Lea Bank and Oslo Exchange go up and down completely randomly.
Pair Corralation between Lea Bank and Oslo Exchange
Assuming the 90 days trading horizon Lea Bank ASA is expected to generate 3.0 times more return on investment than Oslo Exchange. However, Lea Bank is 3.0 times more volatile than Oslo Exchange Mutual. It trades about 0.09 of its potential returns per unit of risk. Oslo Exchange Mutual is currently generating about 0.02 per unit of risk. If you would invest 770.00 in Lea Bank ASA on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Lea Bank ASA or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lea Bank ASA vs. Oslo Exchange Mutual
Performance |
| Timeline |
Lea Bank and Oslo Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Lea Bank ASA
Pair trading matchups for Lea Bank
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Pair Trading with Lea Bank and Oslo Exchange
The main advantage of trading using opposite Lea Bank and Oslo Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lea 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.| Lea Bank vs. Arcticzymes Technologies ASA | Lea Bank vs. Morrow Bank ASA | Lea Bank vs. Skue Sparebank | Lea Bank vs. Goodtech |
| Oslo Exchange vs. Proximar Seafood AS | Oslo Exchange vs. Melhus Sparebank | Oslo Exchange vs. Clean Seas Seafood | Oslo Exchange vs. Lea Bank 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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