Correlation Between Sparebank and Aasen Sparebank
Can any of the company-specific risk be diversified away by investing in both Sparebank and Aasen 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 Sparebank and Aasen Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebank 1 SMN and Aasen Sparebank, you can compare the effects of market volatilities on Sparebank and Aasen 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 Sparebank with a short position of Aasen Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebank and Aasen Sparebank.
Diversification Opportunities for Sparebank and Aasen Sparebank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sparebank and Aasen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sparebank 1 SMN and Aasen Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aasen Sparebank and 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 Sparebank 1 SMN are associated (or correlated) with Aasen Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aasen Sparebank has no effect on the direction of Sparebank i.e., Sparebank and Aasen Sparebank go up and down completely randomly.
Pair Corralation between Sparebank and Aasen Sparebank
Assuming the 90 days trading horizon Sparebank 1 SMN is expected to under-perform the Aasen Sparebank. But the stock apears to be less risky and, when comparing its historical volatility, Sparebank 1 SMN is 1.57 times less risky than Aasen Sparebank. The stock trades about -0.07 of its potential returns per unit of risk. The Aasen Sparebank is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 12,000 in Aasen Sparebank on August 17, 2025 and sell it today you would earn a total of 1,398 from holding Aasen Sparebank or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparebank 1 SMN vs. Aasen Sparebank
Performance |
| Timeline |
| Sparebank 1 SMN |
| Aasen Sparebank |
Sparebank and Aasen Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebank and Aasen Sparebank
The main advantage of trading using opposite Sparebank and Aasen Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebank position performs unexpectedly, Aasen 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 Aasen Sparebank will offset losses from the drop in Aasen Sparebank's long position.| Sparebank vs. SpareBank 1 stlandet | Sparebank vs. Sparebank 1 Nord Norge | Sparebank vs. Sparebank 1 Ringerike | Sparebank vs. Sparebank 1 Ostfold |
| Aasen Sparebank vs. Sogn Sparebank | Aasen Sparebank vs. FFSB | Aasen Sparebank vs. Holand og Setskog | Aasen Sparebank vs. Hermana Holding 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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