Correlation Between Strix Group and ROMERIKE SPAREBANK
Can any of the company-specific risk be diversified away by investing in both Strix Group 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 Strix Group and ROMERIKE SPAREBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and ROMERIKE SPAREBANK NK, you can compare the effects of market volatilities on Strix Group 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 Strix Group with a short position of ROMERIKE SPAREBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and ROMERIKE SPAREBANK.
Diversification Opportunities for Strix Group and ROMERIKE SPAREBANK
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strix and ROMERIKE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and ROMERIKE SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROMERIKE SPAREBANK and Strix Group 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 Strix Group Plc 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 Strix Group i.e., Strix Group and ROMERIKE SPAREBANK go up and down completely randomly.
Pair Corralation between Strix Group and ROMERIKE SPAREBANK
Assuming the 90 days horizon Strix Group is expected to generate 26.18 times less return on investment than ROMERIKE SPAREBANK. But when comparing it to its historical volatility, Strix Group Plc is 13.13 times less risky than ROMERIKE SPAREBANK. It trades about 0.03 of its potential returns per unit of risk. ROMERIKE SPAREBANK NK is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,043 in ROMERIKE SPAREBANK NK on August 25, 2024 and sell it today you would earn a total of 33.00 from holding ROMERIKE SPAREBANK NK or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Strix Group Plc vs. ROMERIKE SPAREBANK NK
Performance |
| Timeline |
| Strix Group Plc |
| ROMERIKE SPAREBANK |
Strix Group and ROMERIKE SPAREBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and ROMERIKE SPAREBANK
The main advantage of trading using opposite Strix Group and ROMERIKE SPAREBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group 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.| Strix Group vs. TSOGO SUN GAMING | Strix Group vs. HOCHSCHILD MINING | Strix Group vs. FUTURE GAMING GRP | Strix Group vs. Boyd Gaming |
| ROMERIKE SPAREBANK vs. Postal Savings Bank | ROMERIKE SPAREBANK vs. Deutsche Bank Aktiengesellschaft | ROMERIKE SPAREBANK vs. Superior Plus Corp | ROMERIKE SPAREBANK vs. NMI Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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