Correlation Between Sunndal Sparebank and Waste Plastic
Can any of the company-specific risk be diversified away by investing in both Sunndal Sparebank and Waste Plastic 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 Waste Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunndal Sparebank and Waste Plastic Upcycling, you can compare the effects of market volatilities on Sunndal Sparebank and Waste Plastic 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 Waste Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunndal Sparebank and Waste Plastic.
Diversification Opportunities for Sunndal Sparebank and Waste Plastic
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunndal and Waste is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sunndal Sparebank and Waste Plastic Upcycling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Plastic Upcycling 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 Waste Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Plastic Upcycling has no effect on the direction of Sunndal Sparebank i.e., Sunndal Sparebank and Waste Plastic go up and down completely randomly.
Pair Corralation between Sunndal Sparebank and Waste Plastic
Assuming the 90 days trading horizon Sunndal Sparebank is expected to generate 0.26 times more return on investment than Waste Plastic. However, Sunndal Sparebank is 3.79 times less risky than Waste Plastic. It trades about 0.05 of its potential returns per unit of risk. Waste Plastic Upcycling is currently generating about -0.11 per unit of risk. If you would invest 10,900 in Sunndal Sparebank on September 3, 2024 and sell it today you would earn a total of 710.00 from holding Sunndal Sparebank or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunndal Sparebank vs. Waste Plastic Upcycling
Performance |
| Timeline |
| Sunndal Sparebank |
| Waste Plastic Upcycling |
Sunndal Sparebank and Waste Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunndal Sparebank and Waste Plastic
The main advantage of trading using opposite Sunndal Sparebank and Waste Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunndal Sparebank position performs unexpectedly, Waste Plastic 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 Waste Plastic will offset losses from the drop in Waste Plastic's long position.| Sunndal Sparebank vs. DnB ASA | Sunndal Sparebank vs. Sparebank 1 SR | Sunndal Sparebank vs. Sparebank 1 SMN | Sunndal Sparebank vs. Sparebanken Mre |
| Waste Plastic vs. Arcticzymes Technologies ASA | Waste Plastic vs. Napatech AS | Waste Plastic vs. SpareBank 1 stlandet | Waste Plastic vs. Goodtech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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