Correlation Between Schibsted ASA and Masoval AS
Can any of the company-specific risk be diversified away by investing in both Schibsted ASA and Masoval AS 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 Schibsted ASA and Masoval AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schibsted ASA B and Masoval AS, you can compare the effects of market volatilities on Schibsted ASA and Masoval AS 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 Schibsted ASA with a short position of Masoval AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schibsted ASA and Masoval AS.
Diversification Opportunities for Schibsted ASA and Masoval AS
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schibsted and Masoval is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Schibsted ASA B and Masoval AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masoval AS and Schibsted ASA 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 Schibsted ASA B are associated (or correlated) with Masoval AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masoval AS has no effect on the direction of Schibsted ASA i.e., Schibsted ASA and Masoval AS go up and down completely randomly.
Pair Corralation between Schibsted ASA and Masoval AS
Assuming the 90 days trading horizon Schibsted ASA B is expected to generate 0.77 times more return on investment than Masoval AS. However, Schibsted ASA B is 1.3 times less risky than Masoval AS. It trades about 0.09 of its potential returns per unit of risk. Masoval AS is currently generating about 0.04 per unit of risk. If you would invest 34,240 in Schibsted ASA B on September 1, 2024 and sell it today you would earn a total of 1,160 from holding Schibsted ASA B or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schibsted ASA B vs. Masoval AS
Performance |
| Timeline |
| Schibsted ASA B |
| Masoval AS |
Schibsted ASA and Masoval AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schibsted ASA and Masoval AS
The main advantage of trading using opposite Schibsted ASA and Masoval AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schibsted ASA position performs unexpectedly, Masoval AS 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 Masoval AS will offset losses from the drop in Masoval AS's long position.| Schibsted ASA vs. Kid ASA | Schibsted ASA vs. Byggma | Schibsted ASA vs. American Shipping | Schibsted ASA vs. Kitron ASA |
| Masoval AS vs. Andfjord Salmon AS | Masoval AS vs. Elkem ASA | Masoval AS vs. Integrated Wind Solutions | Masoval AS 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |