Correlation Between Holand Og and Multiconsult
Can any of the company-specific risk be diversified away by investing in both Holand Og and Multiconsult 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 Holand Og and Multiconsult into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holand og Setskog and Multiconsult AS, you can compare the effects of market volatilities on Holand Og and Multiconsult 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 Holand Og with a short position of Multiconsult. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holand Og and Multiconsult.
Diversification Opportunities for Holand Og and Multiconsult
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holand and Multiconsult is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Holand og Setskog and Multiconsult AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multiconsult AS and Holand Og 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 Holand og Setskog are associated (or correlated) with Multiconsult. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multiconsult AS has no effect on the direction of Holand Og i.e., Holand Og and Multiconsult go up and down completely randomly.
Pair Corralation between Holand Og and Multiconsult
Assuming the 90 days trading horizon Holand og Setskog is expected to generate 3.39 times more return on investment than Multiconsult. However, Holand Og is 3.39 times more volatile than Multiconsult AS. It trades about 0.05 of its potential returns per unit of risk. Multiconsult AS is currently generating about 0.11 per unit of risk. If you would invest 12,300 in Holand og Setskog on September 25, 2024 and sell it today you would earn a total of 850.00 from holding Holand og Setskog or generate 6.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Holand og Setskog vs. Multiconsult AS
Performance |
Timeline |
Holand og Setskog |
Multiconsult AS |
Holand Og and Multiconsult Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holand Og and Multiconsult
The main advantage of trading using opposite Holand Og and Multiconsult positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holand Og position performs unexpectedly, Multiconsult 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 Multiconsult will offset losses from the drop in Multiconsult's long position.Holand Og vs. Sparebank 1 Nord Norge | Holand Og vs. Sparebanken Vest | Holand Og vs. Storebrand ASA | Holand Og vs. DnB ASA |
Multiconsult vs. Kitron ASA | Multiconsult vs. Veidekke ASA | Multiconsult vs. Europris ASA | Multiconsult vs. AF Gruppen 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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