Correlation Between Morrow Bank and Rana Gruber
Can any of the company-specific risk be diversified away by investing in both Morrow Bank and Rana Gruber 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 Rana Gruber 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 Rana Gruber AS, you can compare the effects of market volatilities on Morrow Bank and Rana Gruber 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 Rana Gruber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morrow Bank and Rana Gruber.
Diversification Opportunities for Morrow Bank and Rana Gruber
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Morrow and Rana is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Morrow Bank ASA and Rana Gruber AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rana Gruber AS 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 Rana Gruber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rana Gruber AS has no effect on the direction of Morrow Bank i.e., Morrow Bank and Rana Gruber go up and down completely randomly.
Pair Corralation between Morrow Bank and Rana Gruber
Assuming the 90 days trading horizon Morrow Bank ASA is expected to generate 1.5 times more return on investment than Rana Gruber. However, Morrow Bank is 1.5 times more volatile than Rana Gruber AS. It trades about 0.47 of its potential returns per unit of risk. Rana Gruber AS is currently generating about 0.01 per unit of risk. If you would invest 666.00 in Morrow Bank ASA on September 1, 2024 and sell it today you would earn a total of 188.00 from holding Morrow Bank ASA or generate 28.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Morrow Bank ASA vs. Rana Gruber AS
Performance |
| Timeline |
| Morrow Bank ASA |
| Rana Gruber AS |
Morrow Bank and Rana Gruber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morrow Bank and Rana Gruber
The main advantage of trading using opposite Morrow Bank and Rana Gruber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morrow Bank position performs unexpectedly, Rana Gruber 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 Rana Gruber will offset losses from the drop in Rana Gruber's long position.| Morrow Bank vs. River Tech plc | Morrow Bank vs. Romerike Sparebank | Morrow Bank vs. Xplora Technologies As | Morrow Bank vs. Kraft Bank Asa |
| Rana Gruber vs. Cloudberry Clean Energy | Rana Gruber vs. Skue Sparebank | Rana Gruber vs. SpareBank 1 stlandet | Rana Gruber vs. Morrow 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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