Correlation Between Techstep ASA and Bien Sparebank

Can any of the company-specific risk be diversified away by investing in both Techstep ASA and Bien 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 Techstep ASA and Bien Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Techstep ASA and Bien Sparebank ASA, you can compare the effects of market volatilities on Techstep ASA and Bien 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 Techstep ASA with a short position of Bien Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techstep ASA and Bien Sparebank.

Diversification Opportunities for Techstep ASA and Bien Sparebank

-0.51

Correlation Coefficient

Techstep ASA  Bien Sparebank

Excellent diversification

The 3 months correlation between Techstep and Bien is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Techstep ASA and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA and Techstep 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 Techstep ASA are associated (or correlated) with Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of Techstep ASA i.e., Techstep ASA and Bien Sparebank go up and down completely randomly.

Pair Corralation between Techstep ASA and Bien Sparebank

Assuming the 90 days trading horizon Techstep ASA is expected to generate 2.13 times more return on investment than Bien Sparebank. However, Techstep ASA is 2.13 times more volatile than Bien Sparebank ASA. It trades about 0.12 of its potential returns per unit of risk. Bien Sparebank ASA is currently generating about -0.01 per unit of risk. If you would invest  1,115  in Techstep ASA on May 17, 2025 and sell it today you would earn a total of  200.00  from holding Techstep ASA or generate 17.94% return on investment over 90 days.

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

Techstep ASA  vs.  Bien Sparebank ASA

Techstep ASA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Techstep ASA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, Techstep ASA disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Techstep ASA and Bien Sparebank

The main advantage of trading using opposite Techstep ASA and Bien Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techstep ASA position performs unexpectedly, Bien 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 Bien Sparebank will offset losses from the drop in Bien Sparebank's long position.

The idea behind Techstep ASA and Bien Sparebank ASA 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .