Correlation Between Techstep ASA and Grong Sparebank
Can any of the company-specific risk be diversified away by investing in both Techstep ASA and Grong Sparebank 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 Techstep ASA and Grong Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techstep ASA and Grong Sparebank, you can compare the effects of market volatilities on Techstep ASA and Grong Sparebank 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 Techstep ASA with a short position of Grong Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techstep ASA and Grong Sparebank.
Diversification Opportunities for Techstep ASA and Grong Sparebank
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Techstep and Grong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Techstep ASA and Grong Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grong Sparebank and Techstep 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 Techstep ASA are associated (or correlated) with Grong Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grong Sparebank has no effect on the direction of Techstep ASA i.e., Techstep ASA and Grong Sparebank go up and down completely randomly.
Pair Corralation between Techstep ASA and Grong Sparebank
Assuming the 90 days trading horizon Techstep ASA is expected to generate 2.67 times more return on investment than Grong Sparebank. However, Techstep ASA is 2.67 times more volatile than Grong Sparebank. It trades about 0.02 of its potential returns per unit of risk. Grong Sparebank is currently generating about 0.02 per unit of risk. If you would invest 1,130 in Techstep ASA on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Techstep ASA or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techstep ASA vs. Grong Sparebank
Performance |
| Timeline |
| Techstep ASA |
| Grong Sparebank |
Techstep ASA and Grong Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techstep ASA and Grong Sparebank
The main advantage of trading using opposite Techstep ASA and Grong Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techstep ASA position performs unexpectedly, Grong Sparebank 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 Grong Sparebank will offset losses from the drop in Grong Sparebank's long position.| Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Goodtech | Techstep ASA vs. Elkem ASA | Techstep ASA vs. Integrated Wind Solutions |
| Grong Sparebank vs. Techstep ASA | Grong Sparebank vs. Grieg Seafood ASA | Grong Sparebank vs. Odfjell Drilling | Grong Sparebank vs. Arcticzymes Technologies ASA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |