Correlation Between Xplora Technologies and Kraft Bank
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies and Kraft Bank 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 Kraft Bank 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 Kraft Bank Asa, you can compare the effects of market volatilities on Xplora Technologies and Kraft Bank 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 Kraft Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and Kraft Bank.
Diversification Opportunities for Xplora Technologies and Kraft Bank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xplora and Kraft is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As and Kraft Bank Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Bank Asa 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 Kraft Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Bank Asa has no effect on the direction of Xplora Technologies i.e., Xplora Technologies and Kraft Bank go up and down completely randomly.
Pair Corralation between Xplora Technologies and Kraft Bank
Assuming the 90 days trading horizon Xplora Technologies As is expected to generate 1.11 times more return on investment than Kraft Bank. However, Xplora Technologies is 1.11 times more volatile than Kraft Bank Asa. It trades about 0.33 of its potential returns per unit of risk. Kraft Bank Asa is currently generating about -0.17 per unit of risk. If you would invest 2,470 in Xplora Technologies As on August 29, 2024 and sell it today you would earn a total of 490.00 from holding Xplora Technologies As or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xplora Technologies As vs. Kraft Bank Asa
Performance |
| Timeline |
| Xplora Technologies |
| Kraft Bank Asa |
Xplora Technologies and Kraft Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and Kraft Bank
The main advantage of trading using opposite Xplora Technologies and Kraft Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies position performs unexpectedly, Kraft Bank 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 Kraft Bank will offset losses from the drop in Kraft Bank's long position.| Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Huddlestock Fintech As | Xplora Technologies vs. Elkem ASA | Xplora Technologies vs. Integrated Wind Solutions |
| Kraft Bank vs. Eidesvik Offshore ASA | Kraft Bank vs. Romerike Sparebank | Kraft Bank vs. Melhus Sparebank | Kraft Bank vs. Sea1 Offshore |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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