Correlation Between Xplora Technologies and SpareBank
Can any of the company-specific risk be diversified away by investing in both Xplora Technologies 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 Xplora Technologies and 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 SpareBank 1 stlandet, you can compare the effects of market volatilities on Xplora Technologies 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 Xplora Technologies with a short position of SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xplora Technologies and SpareBank.
Diversification Opportunities for Xplora Technologies and SpareBank
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xplora and SpareBank is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xplora Technologies As 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 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 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 Xplora Technologies i.e., Xplora Technologies and SpareBank go up and down completely randomly.
Pair Corralation between Xplora Technologies and SpareBank
Assuming the 90 days trading horizon Xplora Technologies As is expected to generate 2.67 times more return on investment than SpareBank. However, Xplora Technologies is 2.67 times more volatile than SpareBank 1 stlandet. It trades about 0.07 of its potential returns per unit of risk. SpareBank 1 stlandet is currently generating about 0.02 per unit of risk. If you would invest 3,100 in Xplora Technologies As on November 27, 2024 and sell it today you would earn a total of 80.00 from holding Xplora Technologies As or generate 2.58% 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. SpareBank 1 stlandet
Performance |
| Timeline |
| Xplora Technologies |
| SpareBank 1 stlandet |
Xplora Technologies and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xplora Technologies and SpareBank
The main advantage of trading using opposite Xplora Technologies and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xplora Technologies 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.| Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech As |
| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Sparebanken Vest | SpareBank vs. Pareto Bank ASA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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