Correlation Between Selvaag Bolig and AF Gruppen
Can any of the company-specific risk be diversified away by investing in both Selvaag Bolig and AF Gruppen 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 Selvaag Bolig and AF Gruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selvaag Bolig ASA and AF Gruppen ASA, you can compare the effects of market volatilities on Selvaag Bolig and AF Gruppen 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 Selvaag Bolig with a short position of AF Gruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selvaag Bolig and AF Gruppen.
Diversification Opportunities for Selvaag Bolig and AF Gruppen
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Selvaag and AFG is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Selvaag Bolig ASA and AF Gruppen ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AF Gruppen ASA and Selvaag Bolig 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 Selvaag Bolig ASA are associated (or correlated) with AF Gruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AF Gruppen ASA has no effect on the direction of Selvaag Bolig i.e., Selvaag Bolig and AF Gruppen go up and down completely randomly.
Pair Corralation between Selvaag Bolig and AF Gruppen
Assuming the 90 days trading horizon Selvaag Bolig ASA is expected to generate 1.31 times more return on investment than AF Gruppen. However, Selvaag Bolig is 1.31 times more volatile than AF Gruppen ASA. It trades about 0.03 of its potential returns per unit of risk. AF Gruppen ASA is currently generating about 0.01 per unit of risk. If you would invest 2,648 in Selvaag Bolig ASA on August 26, 2024 and sell it today you would earn a total of 537.00 from holding Selvaag Bolig ASA or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selvaag Bolig ASA vs. AF Gruppen ASA
Performance |
| Timeline |
| Selvaag Bolig ASA |
| AF Gruppen ASA |
Selvaag Bolig and AF Gruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selvaag Bolig and AF Gruppen
The main advantage of trading using opposite Selvaag Bolig and AF Gruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selvaag Bolig position performs unexpectedly, AF Gruppen 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 AF Gruppen will offset losses from the drop in AF Gruppen's long position.| Selvaag Bolig vs. Veidekke ASA | Selvaag Bolig vs. Entra ASA | Selvaag Bolig vs. Kid ASA | Selvaag Bolig vs. Olav Thon Eien |
| AF Gruppen vs. Veidekke ASA | AF Gruppen vs. Gjensidige Forsikring ASA | AF Gruppen vs. Orkla ASA | AF Gruppen vs. Kongsberg Gruppen 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |