Correlation Between SoftOx Solutions and Helgeland Sparebank
Can any of the company-specific risk be diversified away by investing in both SoftOx Solutions and Helgeland 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 SoftOx Solutions and Helgeland Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftOx Solutions AS and Helgeland Sparebank, you can compare the effects of market volatilities on SoftOx Solutions and Helgeland 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 SoftOx Solutions with a short position of Helgeland Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftOx Solutions and Helgeland Sparebank.
Diversification Opportunities for SoftOx Solutions and Helgeland Sparebank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoftOx and Helgeland is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SoftOx Solutions AS and Helgeland Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helgeland Sparebank and SoftOx Solutions 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 SoftOx Solutions AS are associated (or correlated) with Helgeland Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helgeland Sparebank has no effect on the direction of SoftOx Solutions i.e., SoftOx Solutions and Helgeland Sparebank go up and down completely randomly.
Pair Corralation between SoftOx Solutions and Helgeland Sparebank
Assuming the 90 days trading horizon SoftOx Solutions AS is expected to under-perform the Helgeland Sparebank. In addition to that, SoftOx Solutions is 6.87 times more volatile than Helgeland Sparebank. It trades about -0.04 of its total potential returns per unit of risk. Helgeland Sparebank is currently generating about 0.08 per unit of volatility. If you would invest 13,802 in Helgeland Sparebank on September 13, 2024 and sell it today you would earn a total of 598.00 from holding Helgeland Sparebank or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
SoftOx Solutions AS vs. Helgeland Sparebank
Performance |
| Timeline |
| SoftOx Solutions |
| Helgeland Sparebank |
SoftOx Solutions and Helgeland Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftOx Solutions and Helgeland Sparebank
The main advantage of trading using opposite SoftOx Solutions and Helgeland Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftOx Solutions position performs unexpectedly, Helgeland 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 Helgeland Sparebank will offset losses from the drop in Helgeland Sparebank's long position.| SoftOx Solutions vs. Photocure | SoftOx Solutions vs. Kitron ASA | SoftOx Solutions vs. Kongsberg Gruppen ASA | SoftOx Solutions vs. Napatech AS |
| Helgeland Sparebank vs. Sparebank 1 Nord Norge | Helgeland Sparebank vs. Sparebank 1 SMN | Helgeland Sparebank vs. Sparebanken Vest | Helgeland Sparebank vs. Sparebanken Mre |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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