Correlation Between Bien Sparebank and Flekkefjord Sparebank
Can any of the company-specific risk be diversified away by investing in both Bien Sparebank and Flekkefjord 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 Bien Sparebank and Flekkefjord Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bien Sparebank ASA and Flekkefjord Sparebank, you can compare the effects of market volatilities on Bien Sparebank and Flekkefjord 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 Bien Sparebank with a short position of Flekkefjord Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bien Sparebank and Flekkefjord Sparebank.
Diversification Opportunities for Bien Sparebank and Flekkefjord Sparebank
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bien and Flekkefjord is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bien Sparebank ASA and Flekkefjord Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flekkefjord Sparebank and Bien Sparebank 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 Bien Sparebank ASA are associated (or correlated) with Flekkefjord Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flekkefjord Sparebank has no effect on the direction of Bien Sparebank i.e., Bien Sparebank and Flekkefjord Sparebank go up and down completely randomly.
Pair Corralation between Bien Sparebank and Flekkefjord Sparebank
Assuming the 90 days trading horizon Bien Sparebank ASA is expected to generate 1.31 times more return on investment than Flekkefjord Sparebank. However, Bien Sparebank is 1.31 times more volatile than Flekkefjord Sparebank. It trades about 0.1 of its potential returns per unit of risk. Flekkefjord Sparebank is currently generating about 0.01 per unit of risk. If you would invest 13,900 in Bien Sparebank ASA on September 5, 2025 and sell it today you would earn a total of 1,500 from holding Bien Sparebank ASA or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bien Sparebank ASA vs. Flekkefjord Sparebank
Performance |
| Timeline |
| Bien Sparebank ASA |
| Flekkefjord Sparebank |
Bien Sparebank and Flekkefjord Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bien Sparebank and Flekkefjord Sparebank
The main advantage of trading using opposite Bien Sparebank and Flekkefjord Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bien Sparebank position performs unexpectedly, Flekkefjord 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 Flekkefjord Sparebank will offset losses from the drop in Flekkefjord Sparebank's long position.| Bien Sparebank vs. Romerike Sparebank | Bien Sparebank vs. Olav Thon Eien | Bien Sparebank vs. 2020 Bulkers | Bien Sparebank vs. TietoEVRY Oyj |
| Flekkefjord Sparebank vs. Equinor ASA | Flekkefjord Sparebank vs. DnB ASA | Flekkefjord Sparebank vs. Aker BP ASA | Flekkefjord Sparebank vs. Telenor ASA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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