Correlation Between Telenor ASA and Flekkefjord Sparebank
Can any of the company-specific risk be diversified away by investing in both Telenor ASA and Flekkefjord 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 Telenor ASA and Flekkefjord Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA and Flekkefjord Sparebank, you can compare the effects of market volatilities on Telenor ASA and Flekkefjord 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 Telenor ASA with a short position of Flekkefjord Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Flekkefjord Sparebank.
Diversification Opportunities for Telenor ASA and Flekkefjord Sparebank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telenor and Flekkefjord is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA and Flekkefjord Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flekkefjord Sparebank and Telenor ASA 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 Telenor ASA are associated (or correlated) with Flekkefjord Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flekkefjord Sparebank has no effect on the direction of Telenor ASA i.e., Telenor ASA and Flekkefjord Sparebank go up and down completely randomly.
Pair Corralation between Telenor ASA and Flekkefjord Sparebank
Assuming the 90 days trading horizon Telenor ASA is expected to under-perform the Flekkefjord Sparebank. But the stock apears to be less risky and, when comparing its historical volatility, Telenor ASA is 1.14 times less risky than Flekkefjord Sparebank. The stock trades about -0.15 of its potential returns per unit of risk. The Flekkefjord Sparebank is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 12,678 in Flekkefjord Sparebank on September 6, 2025 and sell it today you would lose (140.00) from holding Flekkefjord Sparebank or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telenor ASA vs. Flekkefjord Sparebank
Performance |
| Timeline |
| Telenor ASA |
| Flekkefjord Sparebank |
Telenor ASA and Flekkefjord Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Flekkefjord Sparebank
The main advantage of trading using opposite Telenor ASA and Flekkefjord Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA position performs unexpectedly, Flekkefjord 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 Flekkefjord Sparebank will offset losses from the drop in Flekkefjord Sparebank's long position.| Telenor ASA vs. Instabank ASA | Telenor ASA vs. Trndelag Sparebank | Telenor ASA vs. Skue Sparebank | Telenor ASA vs. SoftwareOne Holding |
| Flekkefjord Sparebank vs. Equinor ASA | Flekkefjord Sparebank vs. DnB ASA | Flekkefjord Sparebank vs. Aker BP ASA | Flekkefjord Sparebank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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