Correlation Between Oslo Exchange and Sparebank
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By analyzing existing cross correlation between Oslo Exchange Mutual and Sparebank 1 SR, you can compare the effects of market volatilities on Oslo Exchange and 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 Oslo Exchange with a short position of Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Sparebank.
Diversification Opportunities for Oslo Exchange and Sparebank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oslo and Sparebank is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Sparebank 1 SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 SR and Oslo Exchange 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 Oslo Exchange Mutual are associated (or correlated) with Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 SR has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Sparebank go up and down completely randomly.
Pair Corralation between Oslo Exchange and Sparebank
Assuming the 90 days trading horizon Oslo Exchange is expected to generate 8.19 times less return on investment than Sparebank. But when comparing it to its historical volatility, Oslo Exchange Mutual is 1.55 times less risky than Sparebank. It trades about 0.01 of its potential returns per unit of risk. Sparebank 1 SR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14,660 in Sparebank 1 SR on August 29, 2024 and sell it today you would earn a total of 120.00 from holding Sparebank 1 SR or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. Sparebank 1 SR
Performance |
| Timeline |
Oslo Exchange and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Sparebank 1 SR
Pair trading matchups for Sparebank
Pair Trading with Oslo Exchange and Sparebank
The main advantage of trading using opposite Oslo Exchange and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, 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 Sparebank will offset losses from the drop in Sparebank's long position.| Oslo Exchange vs. Lea Bank ASA | Oslo Exchange vs. Helgeland Sparebank | Oslo Exchange vs. Sunndal Sparebank | Oslo Exchange vs. Xplora Technologies As |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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