Correlation Between SpareBank and Rana Gruber
Can any of the company-specific risk be diversified away by investing in both SpareBank and Rana Gruber 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 SpareBank and Rana Gruber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpareBank 1 stlandet and Rana Gruber AS, you can compare the effects of market volatilities on SpareBank and Rana Gruber 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 SpareBank with a short position of Rana Gruber. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpareBank and Rana Gruber.
Diversification Opportunities for SpareBank and Rana Gruber
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SpareBank and Rana is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SpareBank 1 stlandet and Rana Gruber AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rana Gruber AS and 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 SpareBank 1 stlandet are associated (or correlated) with Rana Gruber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rana Gruber AS has no effect on the direction of SpareBank i.e., SpareBank and Rana Gruber go up and down completely randomly.
Pair Corralation between SpareBank and Rana Gruber
Assuming the 90 days trading horizon SpareBank is expected to generate 1.93 times less return on investment than Rana Gruber. But when comparing it to its historical volatility, SpareBank 1 stlandet is 1.37 times less risky than Rana Gruber. It trades about 0.07 of its potential returns per unit of risk. Rana Gruber AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,397 in Rana Gruber AS on September 3, 2024 and sell it today you would earn a total of 4,263 from holding Rana Gruber AS or generate 125.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpareBank 1 stlandet vs. Rana Gruber AS
Performance |
| Timeline |
| SpareBank 1 stlandet |
| Rana Gruber AS |
SpareBank and Rana Gruber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpareBank and Rana Gruber
The main advantage of trading using opposite SpareBank and Rana Gruber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpareBank position performs unexpectedly, Rana Gruber 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 Rana Gruber will offset losses from the drop in Rana Gruber's long position.| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Sparebanken Vest | SpareBank vs. Sparebank 1 SR |
| Rana Gruber vs. Lery Seafood Group | Rana Gruber vs. Sunndal Sparebank | Rana Gruber vs. Lea Bank ASA | Rana Gruber vs. Jaeren Sparebank |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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