Correlation Between Schibsted ASA and COSTCO WHOLESALE
Can any of the company-specific risk be diversified away by investing in both Schibsted ASA and COSTCO WHOLESALE 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 Schibsted ASA and COSTCO WHOLESALE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schibsted ASA B and COSTCO WHOLESALE CDR, you can compare the effects of market volatilities on Schibsted ASA and COSTCO WHOLESALE 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 Schibsted ASA with a short position of COSTCO WHOLESALE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schibsted ASA and COSTCO WHOLESALE.
Diversification Opportunities for Schibsted ASA and COSTCO WHOLESALE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Schibsted and COSTCO is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Schibsted ASA B and COSTCO WHOLESALE CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTCO WHOLESALE CDR and Schibsted 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 Schibsted ASA B are associated (or correlated) with COSTCO WHOLESALE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTCO WHOLESALE CDR has no effect on the direction of Schibsted ASA i.e., Schibsted ASA and COSTCO WHOLESALE go up and down completely randomly.
Pair Corralation between Schibsted ASA and COSTCO WHOLESALE
Assuming the 90 days trading horizon Schibsted ASA B is expected to under-perform the COSTCO WHOLESALE. In addition to that, Schibsted ASA is 1.46 times more volatile than COSTCO WHOLESALE CDR. It trades about -0.35 of its total potential returns per unit of risk. COSTCO WHOLESALE CDR is currently generating about -0.32 per unit of volatility. If you would invest 3,080 in COSTCO WHOLESALE CDR on October 18, 2024 and sell it today you would lose (220.00) from holding COSTCO WHOLESALE CDR or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schibsted ASA B vs. COSTCO WHOLESALE CDR
Performance |
| Timeline |
| Schibsted ASA B |
| COSTCO WHOLESALE CDR |
Schibsted ASA and COSTCO WHOLESALE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schibsted ASA and COSTCO WHOLESALE
The main advantage of trading using opposite Schibsted ASA and COSTCO WHOLESALE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schibsted ASA position performs unexpectedly, COSTCO WHOLESALE 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 COSTCO WHOLESALE will offset losses from the drop in COSTCO WHOLESALE's long position.| Schibsted ASA vs. COSTCO WHOLESALE CDR | Schibsted ASA vs. Charter Communications | Schibsted ASA vs. NURAN WIRELESS INC | Schibsted ASA vs. Costco Wholesale Corp |
| COSTCO WHOLESALE vs. Liberty Broadband | COSTCO WHOLESALE vs. Broadwind | COSTCO WHOLESALE vs. GOLD ROAD RES | COSTCO WHOLESALE vs. Sixt Leasing SE |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |