Correlation Between Schibsted ASA and Yellow Pages
Can any of the company-specific risk be diversified away by investing in both Schibsted ASA and Yellow Pages 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 Schibsted ASA and Yellow Pages into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schibsted ASA B and Yellow Pages Limited, you can compare the effects of market volatilities on Schibsted ASA and Yellow Pages 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 Schibsted ASA with a short position of Yellow Pages. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schibsted ASA and Yellow Pages.
Diversification Opportunities for Schibsted ASA and Yellow Pages
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schibsted and Yellow is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Schibsted ASA B and Yellow Pages Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yellow Pages Limited and Schibsted ASA 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 Schibsted ASA B are associated (or correlated) with Yellow Pages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yellow Pages Limited has no effect on the direction of Schibsted ASA i.e., Schibsted ASA and Yellow Pages go up and down completely randomly.
Pair Corralation between Schibsted ASA and Yellow Pages
Assuming the 90 days trading horizon Schibsted ASA B is expected to generate 2.22 times more return on investment than Yellow Pages. However, Schibsted ASA is 2.22 times more volatile than Yellow Pages Limited. It trades about 0.07 of its potential returns per unit of risk. Yellow Pages Limited is currently generating about 0.05 per unit of risk. If you would invest 1,606 in Schibsted ASA B on December 4, 2024 and sell it today you would earn a total of 936.00 from holding Schibsted ASA B or generate 58.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Schibsted ASA B vs. Yellow Pages Limited
Performance |
Timeline |
Schibsted ASA B |
Yellow Pages Limited |
Schibsted ASA and Yellow Pages Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Schibsted ASA and Yellow Pages
The main advantage of trading using opposite Schibsted ASA and Yellow Pages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schibsted ASA position performs unexpectedly, Yellow Pages 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 Yellow Pages will offset losses from the drop in Yellow Pages' long position.Schibsted ASA vs. Sixt Leasing SE | Schibsted ASA vs. GRENKELEASING Dusseldorf | Schibsted ASA vs. REVO INSURANCE SPA | Schibsted ASA vs. Goosehead Insurance |
Yellow Pages vs. SIDETRADE EO 1 | Yellow Pages vs. Japan Medical Dynamic | Yellow Pages vs. Penta Ocean Construction Co | Yellow Pages vs. H2O Retailing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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