Correlation Between Instabank ASA and SpareBank
Can any of the company-specific risk be diversified away by investing in both Instabank ASA 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 Instabank ASA and SpareBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Instabank ASA and SpareBank 1 stlandet, you can compare the effects of market volatilities on Instabank ASA 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 Instabank ASA with a short position of SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Instabank ASA and SpareBank.
Diversification Opportunities for Instabank ASA and SpareBank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Instabank and SpareBank is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Instabank ASA and SpareBank 1 stlandet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpareBank 1 stlandet and Instabank 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 Instabank ASA 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 stlandet has no effect on the direction of Instabank ASA i.e., Instabank ASA and SpareBank go up and down completely randomly.
Pair Corralation between Instabank ASA and SpareBank
Assuming the 90 days trading horizon Instabank ASA is expected to generate 1.3 times more return on investment than SpareBank. However, Instabank ASA is 1.3 times more volatile than SpareBank 1 stlandet. It trades about 0.16 of its potential returns per unit of risk. SpareBank 1 stlandet is currently generating about 0.02 per unit of risk. If you would invest 286.00 in Instabank ASA on September 12, 2025 and sell it today you would earn a total of 41.00 from holding Instabank ASA or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Instabank ASA vs. SpareBank 1 stlandet
Performance |
| Timeline |
| Instabank ASA |
| SpareBank 1 stlandet |
Instabank ASA and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Instabank ASA and SpareBank
The main advantage of trading using opposite Instabank ASA and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instabank ASA 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.| Instabank ASA vs. Aurskog Sparebank | Instabank ASA vs. Sparebanken Ost | Instabank ASA vs. Sparebank 1 Nordvest | Instabank ASA vs. Voss Veksel og |
| SpareBank vs. Sparebank 1 SMN | SpareBank vs. Sparebank 1 Nord Norge | SpareBank vs. Pareto Bank ASA | SpareBank vs. Helgeland 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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