Correlation Between Schibsted ASA and Romerike Sparebank
Can any of the company-specific risk be diversified away by investing in both Schibsted ASA and Romerike Sparebank 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 Romerike Sparebank 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 Romerike Sparebank, you can compare the effects of market volatilities on Schibsted ASA and Romerike Sparebank 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 Romerike Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schibsted ASA and Romerike Sparebank.
Diversification Opportunities for Schibsted ASA and Romerike Sparebank
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Schibsted and Romerike is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Schibsted ASA B and Romerike Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Romerike Sparebank 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 Romerike Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Romerike Sparebank has no effect on the direction of Schibsted ASA i.e., Schibsted ASA and Romerike Sparebank go up and down completely randomly.
Pair Corralation between Schibsted ASA and Romerike Sparebank
Assuming the 90 days trading horizon Schibsted ASA B is expected to under-perform the Romerike Sparebank. In addition to that, Schibsted ASA is 1.41 times more volatile than Romerike Sparebank. It trades about -0.02 of its total potential returns per unit of risk. Romerike Sparebank is currently generating about 0.06 per unit of volatility. If you would invest 12,588 in Romerike Sparebank on September 12, 2024 and sell it today you would earn a total of 210.00 from holding Romerike Sparebank or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Schibsted ASA B vs. Romerike Sparebank
Performance |
| Timeline |
| Schibsted ASA B |
| Romerike Sparebank |
Schibsted ASA and Romerike Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schibsted ASA and Romerike Sparebank
The main advantage of trading using opposite Schibsted ASA and Romerike Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schibsted ASA position performs unexpectedly, Romerike Sparebank 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 Romerike Sparebank will offset losses from the drop in Romerike Sparebank's long position.| Schibsted ASA vs. Kitron ASA | Schibsted ASA vs. Olav Thon Eien | Schibsted ASA vs. Kongsberg Gruppen ASA | Schibsted ASA vs. Napatech AS |
| Romerike Sparebank vs. Lea Bank ASA | Romerike Sparebank vs. Bien Sparebank ASA | Romerike Sparebank vs. Kongsberg Gruppen ASA | Romerike Sparebank vs. Napatech AS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |