Correlation Between Storebrand ASA and Pryme BV
Can any of the company-specific risk be diversified away by investing in both Storebrand ASA and Pryme BV 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 Storebrand ASA and Pryme BV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storebrand ASA and Pryme BV, you can compare the effects of market volatilities on Storebrand ASA and Pryme BV 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 Storebrand ASA with a short position of Pryme BV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand ASA and Pryme BV.
Diversification Opportunities for Storebrand ASA and Pryme BV
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Storebrand and Pryme is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand ASA and Pryme BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pryme BV and Storebrand ASA 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 Storebrand ASA are associated (or correlated) with Pryme BV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pryme BV has no effect on the direction of Storebrand ASA i.e., Storebrand ASA and Pryme BV go up and down completely randomly.
Pair Corralation between Storebrand ASA and Pryme BV
Assuming the 90 days trading horizon Storebrand ASA is expected to generate 0.17 times more return on investment than Pryme BV. However, Storebrand ASA is 5.87 times less risky than Pryme BV. It trades about -0.09 of its potential returns per unit of risk. Pryme BV is currently generating about -0.16 per unit of risk. If you would invest 12,510 in Storebrand ASA on September 1, 2024 and sell it today you would lose (390.00) from holding Storebrand ASA or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Storebrand ASA vs. Pryme BV
Performance |
| Timeline |
| Storebrand ASA |
| Pryme BV |
Storebrand ASA and Pryme BV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand ASA and Pryme BV
The main advantage of trading using opposite Storebrand ASA and Pryme BV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand ASA position performs unexpectedly, Pryme BV 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 Pryme BV will offset losses from the drop in Pryme BV's long position.| Storebrand ASA vs. DnB ASA | Storebrand ASA vs. Gjensidige Forsikring ASA | Storebrand ASA vs. Orkla ASA | Storebrand ASA vs. Telenor ASA |
| Pryme BV vs. Morrow Bank ASA | Pryme BV vs. SpareBank 1 stlandet | Pryme BV vs. Kraft Bank Asa | Pryme BV vs. SD Standard Drilling |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| 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 | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |