Correlation Between Waste Plastic and SpareBank
Can any of the company-specific risk be diversified away by investing in both Waste Plastic and 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 Waste Plastic and SpareBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waste Plastic Upcycling and SpareBank 1 stlandet, you can compare the effects of market volatilities on Waste Plastic and 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 Waste Plastic with a short position of SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waste Plastic and SpareBank.
Diversification Opportunities for Waste Plastic and SpareBank
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Waste and SpareBank is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Waste Plastic Upcycling and SpareBank 1 stlandet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpareBank 1 stlandet and Waste Plastic 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 Waste Plastic Upcycling are associated (or correlated) with SpareBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpareBank 1 stlandet has no effect on the direction of Waste Plastic i.e., Waste Plastic and SpareBank go up and down completely randomly.
Pair Corralation between Waste Plastic and SpareBank
Assuming the 90 days trading horizon Waste Plastic Upcycling is expected to under-perform the SpareBank. In addition to that, Waste Plastic is 2.85 times more volatile than SpareBank 1 stlandet. It trades about -0.28 of its total potential returns per unit of risk. SpareBank 1 stlandet is currently generating about 0.02 per unit of volatility. If you would invest 14,998 in SpareBank 1 stlandet on September 5, 2024 and sell it today you would earn a total of 72.00 from holding SpareBank 1 stlandet or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waste Plastic Upcycling vs. SpareBank 1 stlandet
Performance |
| Timeline |
| Waste Plastic Upcycling |
| SpareBank 1 stlandet |
Waste Plastic and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waste Plastic and SpareBank
The main advantage of trading using opposite Waste Plastic and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waste Plastic position performs unexpectedly, 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 SpareBank will offset losses from the drop in SpareBank's long position.| Waste Plastic vs. SpareBank 1 stlandet | Waste Plastic vs. Nidaros Sparebank | Waste Plastic vs. Morrow Bank ASA | Waste Plastic vs. Instabank ASA |
| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Sparebanken Vest | SpareBank vs. Sparebank 1 SR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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