Correlation Between Laan Spar and BankInvest Globale

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Can any of the company-specific risk be diversified away by investing in both Laan Spar and BankInvest Globale 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 Laan Spar and BankInvest Globale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laan Spar Bank and BankInvest Globale Obl, you can compare the effects of market volatilities on Laan Spar and BankInvest Globale 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 Laan Spar with a short position of BankInvest Globale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laan Spar and BankInvest Globale.

Diversification Opportunities for Laan Spar and BankInvest Globale

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Laan and BankInvest is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank and BankInvest Globale Obl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Globale Obl and Laan Spar 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 Laan Spar Bank are associated (or correlated) with BankInvest Globale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Globale Obl has no effect on the direction of Laan Spar i.e., Laan Spar and BankInvest Globale go up and down completely randomly.

Pair Corralation between Laan Spar and BankInvest Globale

Assuming the 90 days trading horizon Laan Spar Bank is expected to generate 7.0 times more return on investment than BankInvest Globale. However, Laan Spar is 7.0 times more volatile than BankInvest Globale Obl. It trades about 0.17 of its potential returns per unit of risk. BankInvest Globale Obl is currently generating about 0.05 per unit of risk. If you would invest  89,500  in Laan Spar Bank on September 4, 2025 and sell it today you would earn a total of  21,500  from holding Laan Spar Bank or generate 24.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy32.81%
ValuesDaily Returns

Laan Spar Bank  vs.  BankInvest Globale Obl

 Performance 
       Timeline  
Laan Spar Bank 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Laan Spar Bank are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Laan Spar displayed solid returns over the last few months and may actually be approaching a breakup point.
BankInvest Globale Obl 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Over the last 90 days BankInvest Globale Obl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, BankInvest Globale is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Laan Spar and BankInvest Globale Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Laan Spar and BankInvest Globale

The main advantage of trading using opposite Laan Spar and BankInvest Globale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laan Spar position performs unexpectedly, BankInvest Globale 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 BankInvest Globale will offset losses from the drop in BankInvest Globale's long position.
The idea behind Laan Spar Bank and BankInvest Globale Obl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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