Correlation Between Selvaag Bolig and American Shipping
Can any of the company-specific risk be diversified away by investing in both Selvaag Bolig and American Shipping 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 American Shipping 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 American Shipping, you can compare the effects of market volatilities on Selvaag Bolig and American Shipping 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 American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selvaag Bolig and American Shipping.
Diversification Opportunities for Selvaag Bolig and American Shipping
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Selvaag and American is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Selvaag Bolig ASA and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shipping 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 American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of Selvaag Bolig i.e., Selvaag Bolig and American Shipping go up and down completely randomly.
Pair Corralation between Selvaag Bolig and American Shipping
Assuming the 90 days trading horizon Selvaag Bolig ASA is expected to generate 0.62 times more return on investment than American Shipping. However, Selvaag Bolig ASA is 1.6 times less risky than American Shipping. It trades about 0.02 of its potential returns per unit of risk. American Shipping is currently generating about 0.0 per unit of risk. If you would invest 3,108 in Selvaag Bolig ASA on September 1, 2024 and sell it today you would earn a total of 272.00 from holding Selvaag Bolig ASA or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selvaag Bolig ASA vs. American Shipping
Performance |
| Timeline |
| Selvaag Bolig ASA |
| American Shipping |
Selvaag Bolig and American Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selvaag Bolig and American Shipping
The main advantage of trading using opposite Selvaag Bolig and American Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selvaag Bolig position performs unexpectedly, American Shipping 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 American Shipping will offset losses from the drop in American Shipping's long position.| Selvaag Bolig vs. Veidekke ASA | Selvaag Bolig vs. Entra ASA | Selvaag Bolig vs. Kid ASA | Selvaag Bolig vs. Olav Thon Eien |
| American Shipping vs. Aker Horizons AS | American Shipping vs. REC Silicon ASA | American Shipping vs. Kongsberg Automotive Holding | American Shipping vs. Aker Carbon Capture |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |