Correlation Between Bien Sparebank and SoftwareOne Holding

Can any of the company-specific risk be diversified away by investing in both Bien 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 Bien 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 Bien Sparebank ASA and SoftwareOne Holding, you can compare the effects of market volatilities on Bien 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 Bien Sparebank with a short position of SoftwareOne Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bien Sparebank and SoftwareOne Holding.

Diversification Opportunities for Bien Sparebank and SoftwareOne Holding

-0.55

Correlation Coefficient

Bien Sparebank  SoftwareOne Holding

Excellent diversification

The 3 months correlation between Bien and SoftwareOne is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bien Sparebank ASA and SoftwareOne Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftwareOne Holding and Bien 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 Bien Sparebank ASA 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 Bien Sparebank i.e., Bien Sparebank and SoftwareOne Holding go up and down completely randomly.

Pair Corralation between Bien Sparebank and SoftwareOne Holding

Assuming the 90 days trading horizon Bien Sparebank ASA is expected to under-perform the SoftwareOne Holding. But the stock apears to be less risky and, when comparing its historical volatility, Bien Sparebank ASA is 3.24 times less risky than SoftwareOne Holding. The stock trades about -0.03 of its potential returns per unit of risk. The SoftwareOne Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  9,825  in SoftwareOne Holding on July 5, 2025 and sell it today you would earn a total of  475.00  from holding SoftwareOne Holding or generate 4.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bien Sparebank ASA  vs.  SoftwareOne Holding

Bien Sparebank ASA

Risk-Adjusted Performance

Weakest

Over the last 90 days Bien Sparebank ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Bien Sparebank is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

SoftwareOne Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SoftwareOne Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, SoftwareOne Holding may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Bien Sparebank and SoftwareOne Holding

The main advantage of trading using opposite Bien Sparebank and SoftwareOne Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bien 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.

The idea behind Bien Sparebank ASA and SoftwareOne Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.