Correlation Between Lifecare and Jaeren Sparebank
Can any of the company-specific risk be diversified away by investing in both Lifecare and Jaeren 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 Lifecare and Jaeren Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifecare AS and Jaeren Sparebank, you can compare the effects of market volatilities on Lifecare and Jaeren 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 Lifecare with a short position of Jaeren Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifecare and Jaeren Sparebank.
Diversification Opportunities for Lifecare and Jaeren Sparebank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifecare and Jaeren is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lifecare AS and Jaeren Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaeren Sparebank and Lifecare 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 Lifecare AS are associated (or correlated) with Jaeren Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaeren Sparebank has no effect on the direction of Lifecare i.e., Lifecare and Jaeren Sparebank go up and down completely randomly.
Pair Corralation between Lifecare and Jaeren Sparebank
Assuming the 90 days trading horizon Lifecare AS is expected to under-perform the Jaeren Sparebank. In addition to that, Lifecare is 7.43 times more volatile than Jaeren Sparebank. It trades about -0.16 of its total potential returns per unit of risk. Jaeren Sparebank is currently generating about 0.0 per unit of volatility. If you would invest 31,895 in Jaeren Sparebank on September 1, 2024 and sell it today you would lose (5.00) from holding Jaeren Sparebank or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifecare AS vs. Jaeren Sparebank
Performance |
| Timeline |
| Lifecare AS |
| Jaeren Sparebank |
Lifecare and Jaeren Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifecare and Jaeren Sparebank
The main advantage of trading using opposite Lifecare and Jaeren Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifecare position performs unexpectedly, Jaeren 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 Jaeren Sparebank will offset losses from the drop in Jaeren Sparebank's long position.| Lifecare vs. Bergenbio ASA | Lifecare vs. SoftOx Solutions AS | Lifecare vs. Aega ASA | Lifecare vs. Saga Pure ASA |
| Jaeren Sparebank vs. Napatech AS | Jaeren Sparebank vs. Lery Seafood Group | Jaeren Sparebank vs. Arcticzymes Technologies ASA | Jaeren Sparebank vs. Kraft 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |