Correlation Between Roblon AS and Glunz Jensen
Can any of the company-specific risk be diversified away by investing in both Roblon AS and Glunz Jensen 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 Roblon AS and Glunz Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roblon AS and Glunz Jensen, you can compare the effects of market volatilities on Roblon AS and Glunz Jensen 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 Roblon AS with a short position of Glunz Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roblon AS and Glunz Jensen.
Diversification Opportunities for Roblon AS and Glunz Jensen
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roblon and Glunz is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Roblon AS and Glunz Jensen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glunz Jensen and Roblon AS 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 Roblon AS are associated (or correlated) with Glunz Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glunz Jensen has no effect on the direction of Roblon AS i.e., Roblon AS and Glunz Jensen go up and down completely randomly.
Pair Corralation between Roblon AS and Glunz Jensen
Assuming the 90 days trading horizon Roblon AS is expected to generate 1.08 times more return on investment than Glunz Jensen. However, Roblon AS is 1.08 times more volatile than Glunz Jensen. It trades about 0.1 of its potential returns per unit of risk. Glunz Jensen is currently generating about -0.11 per unit of risk. If you would invest 9,600 in Roblon AS on August 29, 2024 and sell it today you would earn a total of 700.00 from holding Roblon AS or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Roblon AS vs. Glunz Jensen
Performance |
| Timeline |
| Roblon AS |
| Glunz Jensen |
Roblon AS and Glunz Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roblon AS and Glunz Jensen
The main advantage of trading using opposite Roblon AS and Glunz Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roblon AS position performs unexpectedly, Glunz Jensen 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 Glunz Jensen will offset losses from the drop in Glunz Jensen's long position.The idea behind Roblon AS and Glunz Jensen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Glunz Jensen vs. First Farms AS | Glunz Jensen vs. SKAKO AS | Glunz Jensen vs. Rovsing AS | Glunz Jensen vs. Roblon 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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