Correlation Between AutoStore Holdings and Bien Sparebank

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

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

Diversification Opportunities for AutoStore Holdings and Bien Sparebank

-0.02

Correlation Coefficient

AutoStore Holdings  Bien Sparebank

Good diversification

The 3 months correlation between AutoStore and Bien is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Bien Sparebank go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Bien Sparebank

Assuming the 90 days trading horizon AutoStore Holdings is expected to under-perform the Bien Sparebank. In addition to that, AutoStore Holdings is 1.12 times more volatile than Bien Sparebank ASA. It trades about -0.04 of its total potential returns per unit of risk. Bien Sparebank ASA is currently generating about 0.16 per unit of volatility. If you would invest  12,477  in Bien Sparebank ASA on December 31, 2024 and sell it today you would earn a total of  4,023  from holding Bien Sparebank ASA or generate 32.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AutoStore Holdings  vs.  Bien Sparebank ASA

AutoStore Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days AutoStore Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Bien Sparebank ASA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bien Sparebank ASA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Bien Sparebank disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AutoStore Holdings and Bien Sparebank

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

The idea behind AutoStore Holdings and Bien Sparebank ASA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.