Correlation Between Nordnet One and DNB Norge
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By analyzing existing cross correlation between Nordnet One Forsiktig and DNB Norge Selektiv, you can compare the effects of market volatilities on Nordnet One 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 One with a short position of DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordnet One and DNB Norge.
Diversification Opportunities for Nordnet One and DNB Norge
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nordnet and DNB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nordnet One Forsiktig 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 One 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 One Forsiktig 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 One i.e., Nordnet One and DNB Norge go up and down completely randomly.
Pair Corralation between Nordnet One and DNB Norge
Assuming the 90 days trading horizon Nordnet One Forsiktig is expected to generate 0.28 times more return on investment than DNB Norge. However, Nordnet One Forsiktig is 3.6 times less risky than DNB Norge. It trades about 0.26 of its potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.03 per unit of risk. If you would invest 12,586 in Nordnet One Forsiktig on November 28, 2024 and sell it today you would earn a total of 121.00 from holding Nordnet One Forsiktig or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nordnet One Forsiktig vs. DNB Norge Selektiv
Performance |
| Timeline |
| Nordnet One Forsiktig |
| DNB Norge Selektiv |
Nordnet One and DNB Norge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordnet One and DNB Norge
The main advantage of trading using opposite Nordnet One and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordnet One 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 One vs. Nordnet One Balansert | Nordnet One vs. KLP AksjeNorge Indeks | Nordnet One vs. Storebrand Global Solutions | Nordnet One vs. Nordea 1 |
| DNB Norge vs. KLP AksjeNorge Indeks | DNB Norge vs. Nordea 1 | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Nordnet Teknologi Indeks |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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