Correlation Between Elopak AS and Sparebank
Can any of the company-specific risk be diversified away by investing in both Elopak AS and 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 Elopak AS and Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elopak AS and Sparebank 1 Nord Norge, you can compare the effects of market volatilities on Elopak AS and 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 Elopak AS with a short position of Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elopak AS and Sparebank.
Diversification Opportunities for Elopak AS and Sparebank
Very weak diversification
The 3 months correlation between Elopak and Sparebank is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Elopak AS and Sparebank 1 Nord Norge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparebank 1 Nord and Elopak AS 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 Elopak AS are associated (or correlated) with Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparebank 1 Nord has no effect on the direction of Elopak AS i.e., Elopak AS and Sparebank go up and down completely randomly.
Pair Corralation between Elopak AS and Sparebank
Assuming the 90 days trading horizon Elopak AS is expected to generate 1.69 times more return on investment than Sparebank. However, Elopak AS is 1.69 times more volatile than Sparebank 1 Nord Norge. It trades about 0.08 of its potential returns per unit of risk. Sparebank 1 Nord Norge is currently generating about 0.1 per unit of risk. If you would invest 4,506 in Elopak AS on September 7, 2025 and sell it today you would earn a total of 364.00 from holding Elopak AS or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elopak AS vs. Sparebank 1 Nord Norge
Performance |
| Timeline |
| Elopak AS |
| Sparebank 1 Nord |
Elopak AS and Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elopak AS and Sparebank
The main advantage of trading using opposite Elopak AS and Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elopak AS position performs unexpectedly, 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 Sparebank will offset losses from the drop in Sparebank's long position.| Elopak AS vs. Morrow Bank ASA | Elopak AS vs. BW Offshore | Elopak AS vs. SD Standard Drilling | Elopak AS vs. Jaeren Sparebank |
| Sparebank vs. Skue Sparebank | Sparebank vs. Ventura Offshore Holding | Sparebank vs. Cloudberry Clean Energy | Sparebank vs. Grong Sparebank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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