Correlation Between Nidaros Sparebank and SoftwareOne Holding
Can any of the company-specific risk be diversified away by investing in both Nidaros Sparebank and SoftwareOne Holding 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 Nidaros Sparebank and SoftwareOne Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nidaros Sparebank and SoftwareOne Holding, you can compare the effects of market volatilities on Nidaros Sparebank and SoftwareOne Holding 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 Nidaros Sparebank with a short position of SoftwareOne Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nidaros Sparebank and SoftwareOne Holding.
Diversification Opportunities for Nidaros Sparebank and SoftwareOne Holding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nidaros and SoftwareOne is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nidaros Sparebank and SoftwareOne Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftwareOne Holding and Nidaros 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 Nidaros Sparebank are associated (or correlated) with SoftwareOne Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftwareOne Holding has no effect on the direction of Nidaros Sparebank i.e., Nidaros Sparebank and SoftwareOne Holding go up and down completely randomly.
Pair Corralation between Nidaros Sparebank and SoftwareOne Holding
Assuming the 90 days trading horizon Nidaros Sparebank is expected to generate 0.55 times more return on investment than SoftwareOne Holding. However, Nidaros Sparebank is 1.83 times less risky than SoftwareOne Holding. It trades about -0.02 of its potential returns per unit of risk. SoftwareOne Holding is currently generating about -0.05 per unit of risk. If you would invest 11,200 in Nidaros Sparebank on June 3, 2025 and sell it today you would lose (300.00) from holding Nidaros Sparebank or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 67.19% |
| Values | Daily Returns |
Nidaros Sparebank vs. SoftwareOne Holding
Performance |
| Timeline |
| Nidaros Sparebank |
| SoftwareOne Holding |
Nidaros Sparebank and SoftwareOne Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nidaros Sparebank and SoftwareOne Holding
The main advantage of trading using opposite Nidaros Sparebank and SoftwareOne Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nidaros Sparebank position performs unexpectedly, SoftwareOne Holding 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 SoftwareOne Holding will offset losses from the drop in SoftwareOne Holding's long position.| Nidaros Sparebank vs. DnB ASA | Nidaros Sparebank vs. Sparebank 1 SMN | Nidaros Sparebank vs. Sparebanken Mre | Nidaros Sparebank vs. Sparebank 1 Ostfold |
| SoftwareOne Holding vs. Equinor ASA | SoftwareOne Holding vs. DnB ASA | SoftwareOne Holding vs. Aker BP ASA | SoftwareOne Holding vs. Telenor 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |