Correlation Between Sogn Sparebank and Gaming Innovation
Can any of the company-specific risk be diversified away by investing in both Sogn Sparebank and Gaming Innovation 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 Sogn Sparebank and Gaming Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogn Sparebank and Gaming Innovation Group, you can compare the effects of market volatilities on Sogn Sparebank and Gaming Innovation 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 Sogn Sparebank with a short position of Gaming Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogn Sparebank and Gaming Innovation.
Diversification Opportunities for Sogn Sparebank and Gaming Innovation
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sogn and Gaming is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sogn Sparebank and Gaming Innovation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Innovation and Sogn 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 Sogn Sparebank are associated (or correlated) with Gaming Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Innovation has no effect on the direction of Sogn Sparebank i.e., Sogn Sparebank and Gaming Innovation go up and down completely randomly.
Pair Corralation between Sogn Sparebank and Gaming Innovation
Assuming the 90 days trading horizon Sogn Sparebank is expected to generate 0.97 times more return on investment than Gaming Innovation. However, Sogn Sparebank is 1.03 times less risky than Gaming Innovation. It trades about 0.14 of its potential returns per unit of risk. Gaming Innovation Group is currently generating about -0.02 per unit of risk. If you would invest 13,913 in Sogn Sparebank on September 1, 2024 and sell it today you would earn a total of 12,482 from holding Sogn Sparebank or generate 89.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.89% |
| Values | Daily Returns |
Sogn Sparebank vs. Gaming Innovation Group
Performance |
| Timeline |
| Sogn Sparebank |
| Gaming Innovation |
Sogn Sparebank and Gaming Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogn Sparebank and Gaming Innovation
The main advantage of trading using opposite Sogn Sparebank and Gaming Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogn Sparebank position performs unexpectedly, Gaming Innovation 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 Gaming Innovation will offset losses from the drop in Gaming Innovation's long position.| Sogn Sparebank vs. Sparebanken Sor | Sogn Sparebank vs. SpareBank 1 stlandet | Sogn Sparebank vs. Holand og Setskog | Sogn Sparebank vs. Sparebank 1 Ringerike |
| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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