Correlation Between Clean Seas and Helgeland Sparebank
Can any of the company-specific risk be diversified away by investing in both Clean Seas and Helgeland 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 Clean Seas and Helgeland Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Seas Seafood and Helgeland Sparebank, you can compare the effects of market volatilities on Clean Seas and Helgeland 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 Clean Seas with a short position of Helgeland Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Seas and Helgeland Sparebank.
Diversification Opportunities for Clean Seas and Helgeland Sparebank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clean and Helgeland is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Clean Seas Seafood and Helgeland Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helgeland Sparebank and Clean Seas 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 Clean Seas Seafood are associated (or correlated) with Helgeland Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helgeland Sparebank has no effect on the direction of Clean Seas i.e., Clean Seas and Helgeland Sparebank go up and down completely randomly.
Pair Corralation between Clean Seas and Helgeland Sparebank
Assuming the 90 days trading horizon Clean Seas is expected to generate 1.29 times less return on investment than Helgeland Sparebank. In addition to that, Clean Seas is 3.3 times more volatile than Helgeland Sparebank. It trades about 0.03 of its total potential returns per unit of risk. Helgeland Sparebank is currently generating about 0.11 per unit of volatility. If you would invest 14,090 in Helgeland Sparebank on December 2, 2024 and sell it today you would earn a total of 1,622 from holding Helgeland Sparebank or generate 11.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Clean Seas Seafood vs. Helgeland Sparebank
Performance |
Timeline |
Clean Seas Seafood |
Helgeland Sparebank |
Clean Seas and Helgeland Sparebank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clean Seas and Helgeland Sparebank
The main advantage of trading using opposite Clean Seas and Helgeland Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Seas position performs unexpectedly, Helgeland 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 Helgeland Sparebank will offset losses from the drop in Helgeland Sparebank's long position.Clean Seas vs. Masoval AS | Clean Seas vs. Andfjord Salmon AS | Clean Seas vs. Arctic Fish Holding | Clean Seas vs. Ice Fish Farm |
Helgeland Sparebank vs. Sparebank 1 Nord Norge | Helgeland Sparebank vs. Sparebank 1 SMN | Helgeland Sparebank vs. Sparebanken Vest | Helgeland Sparebank vs. Sparebanken Mre |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |