Correlation Between Voss Veksel and Sparebanken Sor
Can any of the company-specific risk be diversified away by investing in both Voss Veksel and Sparebanken Sor 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 Voss Veksel and Sparebanken Sor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voss Veksel og and Sparebanken Sor, you can compare the effects of market volatilities on Voss Veksel and Sparebanken Sor 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 Voss Veksel with a short position of Sparebanken Sor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voss Veksel and Sparebanken Sor.
Diversification Opportunities for Voss Veksel and Sparebanken Sor
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voss and Sparebanken is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Voss Veksel og and Sparebanken Sor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebanken Sor and Voss Veksel 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 Voss Veksel og are associated (or correlated) with Sparebanken Sor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebanken Sor has no effect on the direction of Voss Veksel i.e., Voss Veksel and Sparebanken Sor go up and down completely randomly.
Pair Corralation between Voss Veksel and Sparebanken Sor
Assuming the 90 days trading horizon Voss Veksel og is expected to generate 1.33 times more return on investment than Sparebanken Sor. However, Voss Veksel is 1.33 times more volatile than Sparebanken Sor. It trades about 0.17 of its potential returns per unit of risk. Sparebanken Sor is currently generating about 0.05 per unit of risk. If you would invest 29,800 in Voss Veksel og on August 28, 2024 and sell it today you would earn a total of 1,400 from holding Voss Veksel og or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voss Veksel og vs. Sparebanken Sor
Performance |
| Timeline |
| Voss Veksel og |
| Sparebanken Sor |
Voss Veksel and Sparebanken Sor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voss Veksel and Sparebanken Sor
The main advantage of trading using opposite Voss Veksel and Sparebanken Sor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voss Veksel position performs unexpectedly, Sparebanken Sor 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 Sparebanken Sor will offset losses from the drop in Sparebanken Sor's long position.| Voss Veksel vs. Wilh Wilhelmsen Holding | Voss Veksel vs. Sparebank 1 Nord Norge | Voss Veksel vs. Melhus Sparebank | Voss Veksel vs. Pareto Bank ASA |
| Sparebanken Sor vs. Sparebanken Vest | Sparebanken Sor vs. Sparebank 1 Nord Norge | Sparebanken Sor vs. Sparebank 1 SMN | Sparebanken Sor vs. Sparebanken Ost |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |