Correlation Between Morrow Bank and Helgeland Sparebank
Can any of the company-specific risk be diversified away by investing in both Morrow Bank and Helgeland 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 Morrow Bank and Helgeland Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morrow Bank ASA and Helgeland Sparebank, you can compare the effects of market volatilities on Morrow Bank and Helgeland 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 Morrow Bank with a short position of Helgeland Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morrow Bank and Helgeland Sparebank.
Diversification Opportunities for Morrow Bank and Helgeland Sparebank
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Morrow and Helgeland is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Morrow Bank ASA and Helgeland Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helgeland Sparebank and Morrow 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 Morrow Bank ASA are associated (or correlated) with Helgeland Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helgeland Sparebank has no effect on the direction of Morrow Bank i.e., Morrow Bank and Helgeland Sparebank go up and down completely randomly.
Pair Corralation between Morrow Bank and Helgeland Sparebank
Assuming the 90 days trading horizon Morrow Bank ASA is expected to generate 1.47 times more return on investment than Helgeland Sparebank. However, Morrow Bank is 1.47 times more volatile than Helgeland Sparebank. It trades about 0.41 of its potential returns per unit of risk. Helgeland Sparebank is currently generating about 0.1 per unit of risk. If you would invest 600.00 in Morrow Bank ASA on August 29, 2024 and sell it today you would earn a total of 260.00 from holding Morrow Bank ASA or generate 43.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morrow Bank ASA vs. Helgeland Sparebank
Performance |
| Timeline |
| Morrow Bank ASA |
| Helgeland Sparebank |
Morrow Bank and Helgeland Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morrow Bank and Helgeland Sparebank
The main advantage of trading using opposite Morrow Bank and Helgeland Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morrow Bank position performs unexpectedly, Helgeland 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 Helgeland Sparebank will offset losses from the drop in Helgeland Sparebank's long position.| Morrow Bank vs. Nidaros Sparebank | Morrow Bank vs. SpareBank 1 stlandet | Morrow Bank vs. Bien Sparebank ASA | Morrow Bank vs. Aurskog Sparebank |
| Helgeland Sparebank vs. Sparebank 1 Nord Norge | Helgeland Sparebank vs. Sparebank 1 SMN | Helgeland Sparebank vs. Sparebanken Vest | Helgeland Sparebank vs. Sparebanken Mre |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |