Correlation Between Romerike Sparebank and Observe Medical
Can any of the company-specific risk be diversified away by investing in both Romerike Sparebank and Observe Medical 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 Observe Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Romerike Sparebank and Observe Medical Asa, you can compare the effects of market volatilities on Romerike Sparebank and Observe Medical 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 Observe Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Romerike Sparebank and Observe Medical.
Diversification Opportunities for Romerike Sparebank and Observe Medical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Romerike and Observe is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Romerike Sparebank and Observe Medical Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Observe Medical Asa 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 Observe Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Observe Medical Asa has no effect on the direction of Romerike Sparebank i.e., Romerike Sparebank and Observe Medical go up and down completely randomly.
Pair Corralation between Romerike Sparebank and Observe Medical
Assuming the 90 days trading horizon Romerike Sparebank is expected to generate 0.17 times more return on investment than Observe Medical. However, Romerike Sparebank is 5.92 times less risky than Observe Medical. It trades about 0.04 of its potential returns per unit of risk. Observe Medical Asa is currently generating about -0.01 per unit of risk. If you would invest 10,338 in Romerike Sparebank on September 3, 2024 and sell it today you would earn a total of 2,242 from holding Romerike Sparebank or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Romerike Sparebank vs. Observe Medical Asa
Performance |
| Timeline |
| Romerike Sparebank |
| Observe Medical Asa |
Romerike Sparebank and Observe Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Romerike Sparebank and Observe Medical
The main advantage of trading using opposite Romerike Sparebank and Observe Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Romerike Sparebank position performs unexpectedly, Observe Medical 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 Observe Medical will offset losses from the drop in Observe Medical's long position.| Romerike Sparebank vs. Goodtech | Romerike Sparebank vs. Xplora Technologies As | Romerike Sparebank vs. Sparebank 1 SMN | Romerike Sparebank vs. Jaeren Sparebank |
| Observe Medical vs. Polaris Media | Observe Medical vs. Aurskog Sparebank | Observe Medical vs. Romerike Sparebank | Observe Medical 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |