Correlation Between Storebrand ASA and Skue Sparebank
Can any of the company-specific risk be diversified away by investing in both Storebrand ASA and Skue 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 Storebrand ASA and Skue Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storebrand ASA and Skue Sparebank, you can compare the effects of market volatilities on Storebrand ASA and Skue 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 Storebrand ASA with a short position of Skue Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand ASA and Skue Sparebank.
Diversification Opportunities for Storebrand ASA and Skue Sparebank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Storebrand and Skue is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand ASA and Skue Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skue Sparebank and Storebrand 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 Storebrand ASA are associated (or correlated) with Skue Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skue Sparebank has no effect on the direction of Storebrand ASA i.e., Storebrand ASA and Skue Sparebank go up and down completely randomly.
Pair Corralation between Storebrand ASA and Skue Sparebank
Assuming the 90 days trading horizon Storebrand ASA is expected to under-perform the Skue Sparebank. But the stock apears to be less risky and, when comparing its historical volatility, Storebrand ASA is 1.17 times less risky than Skue Sparebank. The stock trades about -0.16 of its potential returns per unit of risk. The Skue Sparebank is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 25,500 in Skue Sparebank on September 25, 2024 and sell it today you would earn a total of 1,895 from holding Skue Sparebank or generate 7.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Storebrand ASA vs. Skue Sparebank
Performance |
Timeline |
Storebrand ASA |
Skue Sparebank |
Storebrand ASA and Skue Sparebank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Storebrand ASA and Skue Sparebank
The main advantage of trading using opposite Storebrand ASA and Skue Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand ASA position performs unexpectedly, Skue 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 Skue Sparebank will offset losses from the drop in Skue Sparebank's long position.Storebrand ASA vs. Sparebank 1 Nord Norge | Storebrand ASA vs. Sparebanken Vest | Storebrand ASA vs. DnB ASA | Storebrand ASA vs. Gjensidige Forsikring ASA |
Skue Sparebank vs. Sparebank 1 Nord Norge | Skue Sparebank vs. Sparebanken Vest | Skue Sparebank vs. Storebrand ASA | Skue Sparebank vs. DnB 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |