Correlation Between Skue Sparebank and Ocean Sun
Can any of the company-specific risk be diversified away by investing in both Skue Sparebank and Ocean Sun 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 Skue Sparebank and Ocean Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skue Sparebank and Ocean Sun As, you can compare the effects of market volatilities on Skue Sparebank and Ocean Sun 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 Skue Sparebank with a short position of Ocean Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skue Sparebank and Ocean Sun.
Diversification Opportunities for Skue Sparebank and Ocean Sun
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Skue and Ocean is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Skue Sparebank and Ocean Sun As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Sun As and Skue Sparebank 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 Skue Sparebank are associated (or correlated) with Ocean Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Sun As has no effect on the direction of Skue Sparebank i.e., Skue Sparebank and Ocean Sun go up and down completely randomly.
Pair Corralation between Skue Sparebank and Ocean Sun
Assuming the 90 days trading horizon Skue Sparebank is expected to generate 0.22 times more return on investment than Ocean Sun. However, Skue Sparebank is 4.54 times less risky than Ocean Sun. It trades about 0.14 of its potential returns per unit of risk. Ocean Sun As is currently generating about -0.07 per unit of risk. If you would invest 25,050 in Skue Sparebank on September 5, 2024 and sell it today you would earn a total of 950.00 from holding Skue Sparebank or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skue Sparebank vs. Ocean Sun As
Performance |
| Timeline |
| Skue Sparebank |
| Ocean Sun As |
Skue Sparebank and Ocean Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skue Sparebank and Ocean Sun
The main advantage of trading using opposite Skue Sparebank and Ocean Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skue Sparebank position performs unexpectedly, Ocean Sun 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 Ocean Sun will offset losses from the drop in Ocean Sun's long position.| Skue Sparebank vs. Melhus Sparebank | Skue Sparebank vs. Sparebanken Ost | Skue Sparebank vs. Sparebanken Sor |
| Ocean Sun vs. Aurskog Sparebank | Ocean Sun vs. Sea1 Offshore | Ocean Sun vs. Skue Sparebank | Ocean Sun vs. Lea Bank 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |