Correlation Between Xplora Technologies and Aurskog Sparebank
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies and Aurskog 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 Xplora Technologies and Aurskog Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xplora Technologies As and Aurskog Sparebank, you can compare the effects of market volatilities on Xplora Technologies and Aurskog 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 Xplora Technologies with a short position of Aurskog Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Aurskog Sparebank.
Diversification Opportunities for Xplora Technologies and Aurskog Sparebank
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xplora and Aurskog is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As and Aurskog Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurskog Sparebank and Xplora Technologies 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 Xplora Technologies As are associated (or correlated) with Aurskog Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurskog Sparebank has no effect on the direction of Xplora Technologies i.e., Xplora Technologies and Aurskog Sparebank go up and down completely randomly.
Pair Corralation between Xplora Technologies and Aurskog Sparebank
Assuming the 90 days trading horizon Xplora Technologies is expected to generate 1.79 times less return on investment than Aurskog Sparebank. In addition to that, Xplora Technologies is 1.67 times more volatile than Aurskog Sparebank. It trades about 0.07 of its total potential returns per unit of risk. Aurskog Sparebank is currently generating about 0.21 per unit of volatility. If you would invest 23,550 in Aurskog Sparebank on November 27, 2024 and sell it today you would earn a total of 1,250 from holding Aurskog Sparebank or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xplora Technologies As vs. Aurskog Sparebank
Performance |
| Timeline |
| Xplora Technologies |
| Aurskog Sparebank |
Xplora Technologies and Aurskog Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and Aurskog Sparebank
The main advantage of trading using opposite Xplora Technologies and Aurskog Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies position performs unexpectedly, Aurskog 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 Aurskog Sparebank will offset losses from the drop in Aurskog Sparebank's long position.| Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech As |
| Aurskog Sparebank vs. Melhus Sparebank | Aurskog Sparebank vs. Holand og Setskog | Aurskog Sparebank vs. Helgeland 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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