Correlation Between Sparebank and Lifecare
Can any of the company-specific risk be diversified away by investing in both Sparebank and Lifecare 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 Lifecare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparebank 1 Ostfold and Lifecare AS, you can compare the effects of market volatilities on Sparebank and Lifecare 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 Lifecare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparebank and Lifecare.
Diversification Opportunities for Sparebank and Lifecare
Excellent diversification
The 3 months correlation between Sparebank and Lifecare is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sparebank 1 Ostfold and Lifecare AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifecare AS 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 Ostfold are associated (or correlated) with Lifecare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifecare AS has no effect on the direction of Sparebank i.e., Sparebank and Lifecare go up and down completely randomly.
Pair Corralation between Sparebank and Lifecare
Assuming the 90 days trading horizon Sparebank 1 Ostfold is expected to generate 0.19 times more return on investment than Lifecare. However, Sparebank 1 Ostfold is 5.27 times less risky than Lifecare. It trades about 0.07 of its potential returns per unit of risk. Lifecare AS is currently generating about -0.04 per unit of risk. If you would invest 28,558 in Sparebank 1 Ostfold on October 7, 2025 and sell it today you would earn a total of 16,772 from holding Sparebank 1 Ostfold or generate 58.73% 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 Ostfold vs. Lifecare AS
Performance |
| Timeline |
| Sparebank 1 Ostfold |
| Lifecare AS |
Sparebank and Lifecare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparebank and Lifecare
The main advantage of trading using opposite Sparebank and Lifecare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparebank position performs unexpectedly, Lifecare 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 Lifecare will offset losses from the drop in Lifecare's long position.| Sparebank vs. Sparebank 1 Ringerike | Sparebank vs. Sparebanken Mre | 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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