Correlation Between United Internet and SPAREBK 1
Can any of the company-specific risk be diversified away by investing in both United Internet and SPAREBK 1 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 United Internet and SPAREBK 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and SPAREBK 1 NORD NORGE, you can compare the effects of market volatilities on United Internet and SPAREBK 1 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 United Internet with a short position of SPAREBK 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and SPAREBK 1.
Diversification Opportunities for United Internet and SPAREBK 1
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and SPAREBK is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and SPAREBK 1 NORD NORGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAREBK 1 NORD and United Internet 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 United Internet AG are associated (or correlated) with SPAREBK 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAREBK 1 NORD has no effect on the direction of United Internet i.e., United Internet and SPAREBK 1 go up and down completely randomly.
Pair Corralation between United Internet and SPAREBK 1
Assuming the 90 days trading horizon United Internet AG is expected to under-perform the SPAREBK 1. But the stock apears to be less risky and, when comparing its historical volatility, United Internet AG is 9.71 times less risky than SPAREBK 1. The stock trades about -0.01 of its potential returns per unit of risk. The SPAREBK 1 NORD NORGE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 859.00 in SPAREBK 1 NORD NORGE on September 12, 2024 and sell it today you would earn a total of 135.00 from holding SPAREBK 1 NORD NORGE or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
United Internet AG vs. SPAREBK 1 NORD NORGE
Performance |
| Timeline |
| United Internet AG |
| SPAREBK 1 NORD |
United Internet and SPAREBK 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Internet and SPAREBK 1
The main advantage of trading using opposite United Internet and SPAREBK 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, SPAREBK 1 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 SPAREBK 1 will offset losses from the drop in SPAREBK 1's long position.| United Internet vs. Superior Plus Corp | United Internet vs. SIVERS SEMICONDUCTORS AB | United Internet vs. Norsk Hydro ASA | United Internet vs. Reliance Steel Aluminum |
| SPAREBK 1 vs. Hemisphere Energy Corp | SPAREBK 1 vs. Spirent Communications plc | SPAREBK 1 vs. Singapore Telecommunications Limited | SPAREBK 1 vs. United Internet AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |