Correlation Between Nordnet Teknologi and DNB Norge
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By analyzing existing cross correlation between Nordnet Teknologi Indeks and DNB Norge Selektiv, you can compare the effects of market volatilities on Nordnet Teknologi and DNB Norge 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 Nordnet Teknologi with a short position of DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordnet Teknologi and DNB Norge.
Diversification Opportunities for Nordnet Teknologi and DNB Norge
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordnet and DNB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nordnet Teknologi Indeks and DNB Norge Selektiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Norge Selektiv and Nordnet Teknologi 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 Nordnet Teknologi Indeks are associated (or correlated) with DNB Norge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Norge Selektiv has no effect on the direction of Nordnet Teknologi i.e., Nordnet Teknologi and DNB Norge go up and down completely randomly.
Pair Corralation between Nordnet Teknologi and DNB Norge
Assuming the 90 days trading horizon Nordnet Teknologi Indeks is expected to under-perform the DNB Norge. In addition to that, Nordnet Teknologi is 3.54 times more volatile than DNB Norge Selektiv. It trades about -0.09 of its total potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.16 per unit of volatility. If you would invest 169,254 in DNB Norge Selektiv on November 2, 2024 and sell it today you would earn a total of 3,048 from holding DNB Norge Selektiv or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordnet Teknologi Indeks vs. DNB Norge Selektiv
Performance |
| Timeline |
| Nordnet Teknologi Indeks |
| DNB Norge Selektiv |
Nordnet Teknologi and DNB Norge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordnet Teknologi and DNB Norge
The main advantage of trading using opposite Nordnet Teknologi and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordnet Teknologi position performs unexpectedly, DNB Norge 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 DNB Norge will offset losses from the drop in DNB Norge's long position.| Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. Dalata Hotel Group |
| DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Dalata Hotel Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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