Correlation Between ISEQ 20 and KLP AksjeGlobal
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By analyzing existing cross correlation between ISEQ 20 Price and KLP AksjeGlobal Indeks, you can compare the effects of market volatilities on ISEQ 20 and KLP AksjeGlobal 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 ISEQ 20 with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISEQ 20 and KLP AksjeGlobal.
Diversification Opportunities for ISEQ 20 and KLP AksjeGlobal
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ISEQ and KLP is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ISEQ 20 Price and KLP AksjeGlobal Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Indeks and ISEQ 20 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 ISEQ 20 Price are associated (or correlated) with KLP AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Indeks has no effect on the direction of ISEQ 20 i.e., ISEQ 20 and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between ISEQ 20 and KLP AksjeGlobal
Assuming the 90 days trading horizon ISEQ 20 Price is expected to under-perform the KLP AksjeGlobal. In addition to that, ISEQ 20 is 1.77 times more volatile than KLP AksjeGlobal Indeks. It trades about -0.02 of its total potential returns per unit of risk. KLP AksjeGlobal Indeks is currently generating about 0.2 per unit of volatility. If you would invest 384,759 in KLP AksjeGlobal Indeks on September 18, 2024 and sell it today you would earn a total of 27,456 from holding KLP AksjeGlobal Indeks or generate 7.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
ISEQ 20 Price vs. KLP AksjeGlobal Indeks
Performance |
Timeline |
ISEQ 20 and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
Returns |
ISEQ 20 Price
Pair trading matchups for ISEQ 20
KLP AksjeGlobal Indeks
Pair trading matchups for KLP AksjeGlobal
Pair Trading with ISEQ 20 and KLP AksjeGlobal
The main advantage of trading using opposite ISEQ 20 and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISEQ 20 position performs unexpectedly, KLP AksjeGlobal 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 AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.ISEQ 20 vs. Donegal Investment Group | ISEQ 20 vs. Dalata Hotel Group | ISEQ 20 vs. Cairn Homes PLC | ISEQ 20 vs. Ryanair Holdings plc |
KLP AksjeGlobal vs. KLP Aksje Fremvoksende | KLP AksjeGlobal vs. KLP AksjeEuropa Indeks | KLP AksjeGlobal vs. KLP AksjeGlobal Indeks | KLP AksjeGlobal vs. KLP AksjeUSA Indeks |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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