Correlation Between Jaeren Sparebank and Arribatec Solutions
Can any of the company-specific risk be diversified away by investing in both Jaeren Sparebank and Arribatec Solutions 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 Jaeren Sparebank and Arribatec Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaeren Sparebank and Arribatec Solutions ASA, you can compare the effects of market volatilities on Jaeren Sparebank and Arribatec Solutions 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 Jaeren Sparebank with a short position of Arribatec Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaeren Sparebank and Arribatec Solutions.
Diversification Opportunities for Jaeren Sparebank and Arribatec Solutions
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jaeren and Arribatec is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jaeren Sparebank and Arribatec Solutions ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arribatec Solutions ASA and Jaeren 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 Jaeren Sparebank are associated (or correlated) with Arribatec Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arribatec Solutions ASA has no effect on the direction of Jaeren Sparebank i.e., Jaeren Sparebank and Arribatec Solutions go up and down completely randomly.
Pair Corralation between Jaeren Sparebank and Arribatec Solutions
Assuming the 90 days trading horizon Jaeren Sparebank is expected to generate 3.93 times less return on investment than Arribatec Solutions. But when comparing it to its historical volatility, Jaeren Sparebank is 2.86 times less risky than Arribatec Solutions. It trades about 0.03 of its potential returns per unit of risk. Arribatec Solutions ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 670.00 in Arribatec Solutions ASA on August 28, 2025 and sell it today you would earn a total of 30.00 from holding Arribatec Solutions ASA or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaeren Sparebank vs. Arribatec Solutions ASA
Performance |
| Timeline |
| Jaeren Sparebank |
| Arribatec Solutions ASA |
Jaeren Sparebank and Arribatec Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaeren Sparebank and Arribatec Solutions
The main advantage of trading using opposite Jaeren Sparebank and Arribatec Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaeren Sparebank position performs unexpectedly, Arribatec Solutions 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 Arribatec Solutions will offset losses from the drop in Arribatec Solutions' long position.| Jaeren Sparebank vs. Huddlestock Fintech As | Jaeren Sparebank vs. Eidesvik Offshore ASA | Jaeren Sparebank vs. SoftwareOne Holding | Jaeren Sparebank vs. Romerike Sparebank |
| Arribatec Solutions vs. Jaeren Sparebank | Arribatec Solutions vs. Nordic Mining ASA | Arribatec Solutions vs. Sogn Sparebank | Arribatec Solutions vs. Arcticzymes Technologies 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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