Correlation Between Techstep ASA and Nidaros Sparebank
Can any of the company-specific risk be diversified away by investing in both Techstep ASA and Nidaros 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 Nidaros 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 Nidaros Sparebank, you can compare the effects of market volatilities on Techstep ASA and Nidaros 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 Nidaros Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techstep ASA and Nidaros Sparebank.
Diversification Opportunities for Techstep ASA and Nidaros Sparebank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techstep and Nidaros is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Techstep ASA and Nidaros Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nidaros 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 Nidaros Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nidaros Sparebank has no effect on the direction of Techstep ASA i.e., Techstep ASA and Nidaros Sparebank go up and down completely randomly.
Pair Corralation between Techstep ASA and Nidaros Sparebank
Assuming the 90 days trading horizon Techstep ASA is expected to generate 6.4 times more return on investment than Nidaros Sparebank. However, Techstep ASA is 6.4 times more volatile than Nidaros Sparebank. It trades about 0.01 of its potential returns per unit of risk. Nidaros Sparebank is currently generating about -0.35 per unit of risk. If you would invest 1,210 in Techstep ASA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Techstep ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techstep ASA vs. Nidaros Sparebank
Performance |
| Timeline |
| Techstep ASA |
| Nidaros Sparebank |
Techstep ASA and Nidaros Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techstep ASA and Nidaros Sparebank
The main advantage of trading using opposite Techstep ASA and Nidaros Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techstep ASA position performs unexpectedly, Nidaros 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 Nidaros Sparebank will offset losses from the drop in Nidaros Sparebank's long position.| Techstep ASA vs. Next Biometrics Group | Techstep ASA vs. Zalaris ASA | Techstep ASA vs. NRC Group ASA | Techstep ASA vs. Goodtech |
| Nidaros Sparebank vs. Sparebank 1 SMN | Nidaros Sparebank vs. Sparebank 1 Nord Norge | Nidaros Sparebank vs. Sparebanken Vest | Nidaros Sparebank vs. Sparebank 1 Ostfold |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |