Correlation Between Storebrand Global and DOW

By analyzing existing cross correlation between Storebrand Global ESG and DOW you can compare the effects of market volatilities on Storebrand Global and DOW 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 Storebrand Global with a short position of DOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and DOW.

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Can any of the company-specific risk be diversified away by investing in both Storebrand Global and DOW at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Storebrand Global and DOW into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Storebrand Global and DOW

-0.03
Correlation
SG
DOW

Good diversification

The 3 months correlation between Storebrand and DOW is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global ESG Plus A5 and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Storebrand Global 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 Storebrand Global ESG are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Storebrand Global i.e. Storebrand Global and DOW go up and down completely randomly.
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Pair Corralation between Storebrand Global and DOW

If you would invest (100.00)  in Storebrand Global ESG on April 25, 2020 and sell it today you would earn a total of  100.00  from holding Storebrand Global ESG or generate -100.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Storebrand Global ESG Plus A5  vs.  DOW

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      Timeline 
 Predicted Return Density 
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Check out your portfolio center. Please also try Global Correlations module to find global opportunities by holding instruments from different markets.


 
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