Correlation Between Wallenius Wilhelmsen and Romerike Sparebank
Can any of the company-specific risk be diversified away by investing in both Wallenius Wilhelmsen and Romerike 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 Wallenius Wilhelmsen and Romerike Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wallenius Wilhelmsen Logistics and Romerike Sparebank, you can compare the effects of market volatilities on Wallenius Wilhelmsen and Romerike 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 Wallenius Wilhelmsen with a short position of Romerike Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallenius Wilhelmsen and Romerike Sparebank.
Diversification Opportunities for Wallenius Wilhelmsen and Romerike Sparebank
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wallenius and Romerike is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wallenius Wilhelmsen Logistics and Romerike Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Romerike Sparebank and Wallenius Wilhelmsen 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 Wallenius Wilhelmsen Logistics are associated (or correlated) with Romerike Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Romerike Sparebank has no effect on the direction of Wallenius Wilhelmsen i.e., Wallenius Wilhelmsen and Romerike Sparebank go up and down completely randomly.
Pair Corralation between Wallenius Wilhelmsen and Romerike Sparebank
Assuming the 90 days trading horizon Wallenius Wilhelmsen Logistics is expected to under-perform the Romerike Sparebank. In addition to that, Wallenius Wilhelmsen is 2.21 times more volatile than Romerike Sparebank. It trades about -0.06 of its total potential returns per unit of risk. Romerike Sparebank is currently generating about 0.07 per unit of volatility. If you would invest 12,696 in Romerike Sparebank on October 21, 2024 and sell it today you would earn a total of 154.00 from holding Romerike Sparebank or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wallenius Wilhelmsen Logistics vs. Romerike Sparebank
Performance |
| Timeline |
| Wallenius Wilhelmsen |
| Romerike Sparebank |
Wallenius Wilhelmsen and Romerike Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wallenius Wilhelmsen and Romerike Sparebank
The main advantage of trading using opposite Wallenius Wilhelmsen and Romerike Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallenius Wilhelmsen position performs unexpectedly, Romerike 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 Romerike Sparebank will offset losses from the drop in Romerike Sparebank's long position.| Wallenius Wilhelmsen vs. Hoegh Autoliners ASA | Wallenius Wilhelmsen vs. Stolt Nielsen Limited | Wallenius Wilhelmsen vs. MPC Container Ships | Wallenius Wilhelmsen vs. Aker BP ASA |
| Romerike Sparebank vs. Jaeren Sparebank | Romerike Sparebank vs. Romsdal Sparebank | Romerike Sparebank vs. Aurskog Sparebank | Romerike Sparebank vs. Aasen 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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