Correlation Between Sunndal Sparebank and Instabank ASA
Can any of the company-specific risk be diversified away by investing in both Sunndal Sparebank and Instabank ASA 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 Instabank ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunndal Sparebank and Instabank ASA, you can compare the effects of market volatilities on Sunndal Sparebank and Instabank ASA 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 Instabank ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunndal Sparebank and Instabank ASA.
Diversification Opportunities for Sunndal Sparebank and Instabank ASA
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunndal and Instabank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sunndal Sparebank and Instabank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instabank ASA 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 Instabank ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instabank ASA has no effect on the direction of Sunndal Sparebank i.e., Sunndal Sparebank and Instabank ASA go up and down completely randomly.
Pair Corralation between Sunndal Sparebank and Instabank ASA
Assuming the 90 days trading horizon Sunndal Sparebank is expected to generate 1.32 times more return on investment than Instabank ASA. However, Sunndal Sparebank is 1.32 times more volatile than Instabank ASA. It trades about 0.17 of its potential returns per unit of risk. Instabank ASA is currently generating about 0.1 per unit of risk. If you would invest 11,500 in Sunndal Sparebank on November 27, 2024 and sell it today you would earn a total of 500.00 from holding Sunndal Sparebank or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunndal Sparebank vs. Instabank ASA
Performance |
| Timeline |
| Sunndal Sparebank |
| Instabank ASA |
Sunndal Sparebank and Instabank ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunndal Sparebank and Instabank ASA
The main advantage of trading using opposite Sunndal Sparebank and Instabank ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunndal Sparebank position performs unexpectedly, Instabank ASA 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 Instabank ASA will offset losses from the drop in Instabank ASA's long position.| Sunndal Sparebank vs. Helgeland Sparebank | Sunndal Sparebank vs. Proximar Seafood AS | Sunndal Sparebank vs. Bien Sparebank ASA | Sunndal Sparebank vs. Odfjell Technology |
| Instabank ASA vs. Nidaros Sparebank | Instabank ASA vs. Morrow Bank ASA | Instabank ASA vs. SD Standard Drilling | Instabank ASA vs. Shelf 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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