Correlation Between Romerike Sparebank and Alternus Energy
Can any of the company-specific risk be diversified away by investing in both Romerike Sparebank and Alternus Energy 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 Romerike Sparebank and Alternus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Romerike Sparebank and Alternus Energy Group, you can compare the effects of market volatilities on Romerike Sparebank and Alternus Energy 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 Romerike Sparebank with a short position of Alternus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Romerike Sparebank and Alternus Energy.
Diversification Opportunities for Romerike Sparebank and Alternus Energy
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Romerike and Alternus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Romerike Sparebank and Alternus Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternus Energy Group and Romerike 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 Romerike Sparebank are associated (or correlated) with Alternus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternus Energy Group has no effect on the direction of Romerike Sparebank i.e., Romerike Sparebank and Alternus Energy go up and down completely randomly.
Pair Corralation between Romerike Sparebank and Alternus Energy
Assuming the 90 days trading horizon Romerike Sparebank is expected to under-perform the Alternus Energy. But the stock apears to be less risky and, when comparing its historical volatility, Romerike Sparebank is 23.64 times less risky than Alternus Energy. The stock trades about -0.04 of its potential returns per unit of risk. The Alternus Energy Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Alternus Energy Group on October 10, 2024 and sell it today you would earn a total of 16.00 from holding Alternus Energy Group or generate 42.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Romerike Sparebank vs. Alternus Energy Group
Performance |
| Timeline |
| Romerike Sparebank |
| Alternus Energy Group |
Romerike Sparebank and Alternus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Romerike Sparebank and Alternus Energy
The main advantage of trading using opposite Romerike Sparebank and Alternus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Romerike Sparebank position performs unexpectedly, Alternus Energy 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 Alternus Energy will offset losses from the drop in Alternus Energy's long position.| Romerike Sparebank vs. Norwegian Air Shuttle | Romerike Sparebank vs. Helgeland Sparebank | Romerike Sparebank vs. Dolphin Drilling AS | Romerike Sparebank vs. Polaris Media |
| Alternus Energy vs. Vow Green Metals | Alternus Energy vs. Sunndal Sparebank | Alternus Energy vs. Norwegian Air Shuttle | Alternus Energy vs. BW Offshore |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |