Correlation Between Saga Pure and Aega ASA
Can any of the company-specific risk be diversified away by investing in both Saga Pure and Aega ASA 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 Saga Pure and Aega ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saga Pure ASA and Aega ASA, you can compare the effects of market volatilities on Saga Pure and Aega ASA 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 Saga Pure with a short position of Aega ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saga Pure and Aega ASA.
Diversification Opportunities for Saga Pure and Aega ASA
Very good diversification
The 3 months correlation between Saga and Aega is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saga Pure ASA and Aega ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aega ASA and Saga Pure 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 Saga Pure ASA are associated (or correlated) with Aega ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aega ASA has no effect on the direction of Saga Pure i.e., Saga Pure and Aega ASA go up and down completely randomly.
Pair Corralation between Saga Pure and Aega ASA
Assuming the 90 days trading horizon Saga Pure ASA is expected to under-perform the Aega ASA. But the stock apears to be less risky and, when comparing its historical volatility, Saga Pure ASA is 18.89 times less risky than Aega ASA. The stock trades about -0.03 of its potential returns per unit of risk. The Aega ASA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Aega ASA on August 31, 2024 and sell it today you would lose (210.00) from holding Aega ASA or give up 88.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saga Pure ASA vs. Aega ASA
Performance |
| Timeline |
| Saga Pure ASA |
| Aega ASA |
Saga Pure and Aega ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saga Pure and Aega ASA
The main advantage of trading using opposite Saga Pure and Aega ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saga Pure position performs unexpectedly, Aega ASA 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 Aega ASA will offset losses from the drop in Aega ASA's long position.| Saga Pure vs. Aker Horizons AS | Saga Pure vs. REC Silicon ASA | Saga Pure vs. Kongsberg Automotive Holding | Saga Pure vs. Aker Carbon Capture |
| Aega ASA vs. EAM Solar ASA | Aega ASA vs. Elkem ASA | Aega ASA vs. Integrated Wind Solutions | Aega ASA vs. Vow 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |