Correlation Between Sunndal Sparebank and Alternus Energy
Can any of the company-specific risk be diversified away by investing in both Sunndal Sparebank and Alternus Energy 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 Sunndal Sparebank and Alternus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunndal Sparebank and Alternus Energy Group, you can compare the effects of market volatilities on Sunndal Sparebank and Alternus Energy 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 Sunndal Sparebank with a short position of Alternus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunndal Sparebank and Alternus Energy.
Diversification Opportunities for Sunndal Sparebank and Alternus Energy
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunndal and Alternus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sunndal Sparebank and Alternus Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternus Energy Group and Sunndal 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 Sunndal Sparebank are associated (or correlated) with Alternus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternus Energy Group has no effect on the direction of Sunndal Sparebank i.e., Sunndal Sparebank and Alternus Energy go up and down completely randomly.
Pair Corralation between Sunndal Sparebank and Alternus Energy
Assuming the 90 days trading horizon Sunndal Sparebank is expected to under-perform the Alternus Energy. But the stock apears to be less risky and, when comparing its historical volatility, Sunndal Sparebank is 20.18 times less risky than Alternus Energy. The stock trades about -0.02 of its potential returns per unit of risk. The Alternus Energy Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Alternus Energy Group on October 11, 2024 and sell it today you would earn a total of 11.00 from holding Alternus Energy Group or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunndal Sparebank vs. Alternus Energy Group
Performance |
| Timeline |
| Sunndal Sparebank |
| Alternus Energy Group |
Sunndal Sparebank and Alternus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunndal Sparebank and Alternus Energy
The main advantage of trading using opposite Sunndal Sparebank and Alternus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunndal Sparebank position performs unexpectedly, Alternus Energy 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 Alternus Energy will offset losses from the drop in Alternus Energy's long position.| Sunndal Sparebank vs. Cloudberry Clean Energy | Sunndal Sparebank vs. NorAm Drilling AS | Sunndal Sparebank vs. SpareBank 1 stlandet | Sunndal Sparebank vs. SD Standard Drilling |
| Alternus Energy vs. Vow Green Metals | Alternus Energy vs. Sunndal Sparebank | Alternus Energy vs. Norwegian Air Shuttle | Alternus Energy vs. BW Offshore |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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