Correlation Between Nidaros Sparebank and Circa Group
Can any of the company-specific risk be diversified away by investing in both Nidaros Sparebank and Circa Group 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 Nidaros Sparebank and Circa Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nidaros Sparebank and Circa Group AS, you can compare the effects of market volatilities on Nidaros Sparebank and Circa Group 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 Nidaros Sparebank with a short position of Circa Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nidaros Sparebank and Circa Group.
Diversification Opportunities for Nidaros Sparebank and Circa Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nidaros and Circa is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nidaros Sparebank and Circa Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circa Group AS and Nidaros Sparebank 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 Nidaros Sparebank are associated (or correlated) with Circa Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circa Group AS has no effect on the direction of Nidaros Sparebank i.e., Nidaros Sparebank and Circa Group go up and down completely randomly.
Pair Corralation between Nidaros Sparebank and Circa Group
If you would invest 64.00 in Circa Group AS on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Circa Group AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nidaros Sparebank vs. Circa Group AS
Performance |
| Timeline |
| Nidaros Sparebank |
| Circa Group AS |
Nidaros Sparebank and Circa Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nidaros Sparebank and Circa Group
The main advantage of trading using opposite Nidaros Sparebank and Circa Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nidaros Sparebank position performs unexpectedly, Circa Group 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 Circa Group will offset losses from the drop in Circa Group's long position.| Nidaros Sparebank vs. Sparebank 1 SMN | Nidaros Sparebank vs. Sparebank 1 Nord Norge | Nidaros Sparebank vs. Sparebanken Vest | Nidaros Sparebank vs. Sparebank 1 Ostfold |
| Circa Group vs. Sparebank 1 SMN | Circa Group vs. Lery Seafood Group | Circa Group vs. Nidaros Sparebank | Circa Group vs. SpareBank 1 stlandet |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |