Correlation Between Techstep ASA and Kraft Bank
Can any of the company-specific risk be diversified away by investing in both Techstep ASA and Kraft Bank 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 Kraft Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techstep ASA and Kraft Bank Asa, you can compare the effects of market volatilities on Techstep ASA and Kraft Bank 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 Kraft Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techstep ASA and Kraft Bank.
Diversification Opportunities for Techstep ASA and Kraft Bank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Techstep and Kraft is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Techstep ASA and Kraft Bank Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Bank Asa 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 Kraft Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Bank Asa has no effect on the direction of Techstep ASA i.e., Techstep ASA and Kraft Bank go up and down completely randomly.
Pair Corralation between Techstep ASA and Kraft Bank
Assuming the 90 days trading horizon Techstep ASA is expected to generate 1.35 times more return on investment than Kraft Bank. However, Techstep ASA is 1.35 times more volatile than Kraft Bank Asa. It trades about 0.07 of its potential returns per unit of risk. Kraft Bank Asa is currently generating about 0.01 per unit of risk. If you would invest 880.00 in Techstep ASA on September 1, 2024 and sell it today you would earn a total of 330.00 from holding Techstep ASA or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techstep ASA vs. Kraft Bank Asa
Performance |
| Timeline |
| Techstep ASA |
| Kraft Bank Asa |
Techstep ASA and Kraft Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techstep ASA and Kraft Bank
The main advantage of trading using opposite Techstep ASA and Kraft Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techstep ASA position performs unexpectedly, Kraft Bank 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 Kraft Bank will offset losses from the drop in Kraft Bank's long position.| Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Zalaris ASA | Techstep ASA vs. NRC Group ASA | Techstep ASA vs. Goodtech |
| Kraft Bank vs. Romerike Sparebank | Kraft Bank vs. Nidaros Sparebank | Kraft Bank vs. Odfjell Drilling | Kraft Bank vs. Helgeland Sparebank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |