Correlation Between KASPIKZ (SPGDR and Norsk Hydro
Can any of the company-specific risk be diversified away by investing in both KASPIKZ (SPGDR and Norsk Hydro 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 KASPIKZ (SPGDR and Norsk Hydro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KASPIKZ 1 and Norsk Hydro ASA, you can compare the effects of market volatilities on KASPIKZ (SPGDR and Norsk Hydro 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 KASPIKZ (SPGDR with a short position of Norsk Hydro. Check out your portfolio center. Please also check ongoing floating volatility patterns of KASPIKZ (SPGDR and Norsk Hydro.
Diversification Opportunities for KASPIKZ (SPGDR and Norsk Hydro
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between KASPIKZ and Norsk is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding KASPIKZ 1 and Norsk Hydro ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norsk Hydro ASA and KASPIKZ (SPGDR 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 KASPIKZ 1 are associated (or correlated) with Norsk Hydro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norsk Hydro ASA has no effect on the direction of KASPIKZ (SPGDR i.e., KASPIKZ (SPGDR and Norsk Hydro go up and down completely randomly.
Pair Corralation between KASPIKZ (SPGDR and Norsk Hydro
Assuming the 90 days horizon KASPIKZ 1 is expected to under-perform the Norsk Hydro. In addition to that, KASPIKZ (SPGDR is 1.08 times more volatile than Norsk Hydro ASA. It trades about -0.03 of its total potential returns per unit of risk. Norsk Hydro ASA is currently generating about 0.1 per unit of volatility. If you would invest 527.00 in Norsk Hydro ASA on December 27, 2024 and sell it today you would earn a total of 62.00 from holding Norsk Hydro ASA or generate 11.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KASPIKZ 1 vs. Norsk Hydro ASA
Performance |
Timeline |
KASPIKZ (SPGDR |
Norsk Hydro ASA |
KASPIKZ (SPGDR and Norsk Hydro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KASPIKZ (SPGDR and Norsk Hydro
The main advantage of trading using opposite KASPIKZ (SPGDR and Norsk Hydro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KASPIKZ (SPGDR position performs unexpectedly, Norsk Hydro 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 Norsk Hydro will offset losses from the drop in Norsk Hydro's long position.KASPIKZ (SPGDR vs. Sibanye Stillwater Limited | KASPIKZ (SPGDR vs. Impala Platinum Holdings | KASPIKZ (SPGDR vs. Cellink AB | KASPIKZ (SPGDR vs. Mowi ASA |
Norsk Hydro vs. Micron Technology | Norsk Hydro vs. Check Point Software | Norsk Hydro vs. Alfa Financial Software | Norsk Hydro vs. Mitsui Chemicals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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