Correlation Between KLP Aksje and KLP Aksje

Can any of the company-specific risk be diversified away by investing in both KLP Aksje and KLP Aksje 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 KLP Aksje and KLP Aksje into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KLP Aksje Fremvoksende and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on KLP Aksje and KLP Aksje 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 KLP Aksje with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Aksje and KLP Aksje.

Diversification Opportunities for KLP Aksje and KLP Aksje

0.94

Correlation Coefficient

KLP Aksje  KLP Aksje

Almost no diversification

The 3 months correlation between KLP and KLP is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding KLP Aksje Fremvoksende and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende and KLP Aksje 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 KLP Aksje Fremvoksende are associated (or correlated) with KLP Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of KLP Aksje i.e., KLP Aksje and KLP Aksje go up and down completely randomly.

Pair Corralation between KLP Aksje and KLP Aksje

Assuming the 90 days trading horizon KLP Aksje Fremvoksende is expected to under-perform the KLP Aksje. But the fund apears to be less risky and, when comparing its historical volatility, KLP Aksje Fremvoksende is 1.4 times less risky than KLP Aksje. The fund trades about -0.11 of its potential returns per unit of risk. The KLP Aksje Fremvoksende is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  297,709  in KLP Aksje Fremvoksende on December 30, 2024 and sell it today you would lose (7,933) from holding KLP Aksje Fremvoksende or give up 2.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

KLP Aksje Fremvoksende  vs.  KLP Aksje Fremvoksende

KLP Aksje Fremvoksende

Risk-Adjusted Performance

Very Weak

Over the last 90 days KLP Aksje Fremvoksende has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, KLP Aksje is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

KLP Aksje Fremvoksende

Risk-Adjusted Performance

Very Weak

Over the last 90 days KLP Aksje Fremvoksende has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, KLP Aksje is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with KLP Aksje and KLP Aksje

The main advantage of trading using opposite KLP Aksje and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Aksje position performs unexpectedly, KLP Aksje 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 KLP Aksje will offset losses from the drop in KLP Aksje's long position.

The idea behind KLP Aksje Fremvoksende and KLP Aksje Fremvoksende pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.