Correlation Between Arctic Fish and DNB NOR
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By analyzing existing cross correlation between Arctic Fish Holding and DNB NOR KAPFORV, you can compare the effects of market volatilities on Arctic Fish and DNB NOR 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 Arctic Fish with a short position of DNB NOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Fish and DNB NOR.
Diversification Opportunities for Arctic Fish and DNB NOR
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arctic and DNB is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Fish Holding and DNB NOR KAPFORV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB NOR KAPFORV and Arctic Fish 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 Arctic Fish Holding are associated (or correlated) with DNB NOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB NOR KAPFORV has no effect on the direction of Arctic Fish i.e., Arctic Fish and DNB NOR go up and down completely randomly.
Pair Corralation between Arctic Fish and DNB NOR
Assuming the 90 days trading horizon Arctic Fish is expected to generate 1.99 times less return on investment than DNB NOR. In addition to that, Arctic Fish is 34.8 times more volatile than DNB NOR KAPFORV. It trades about 0.01 of its total potential returns per unit of risk. DNB NOR KAPFORV is currently generating about 0.47 per unit of volatility. If you would invest 108,356 in DNB NOR KAPFORV on September 1, 2024 and sell it today you would earn a total of 1,417 from holding DNB NOR KAPFORV or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arctic Fish Holding vs. DNB NOR KAPFORV
Performance |
| Timeline |
| Arctic Fish Holding |
| DNB NOR KAPFORV |
Arctic Fish and DNB NOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Fish and DNB NOR
The main advantage of trading using opposite Arctic Fish and DNB NOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Fish position performs unexpectedly, DNB NOR 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 NOR will offset losses from the drop in DNB NOR's long position.| Arctic Fish vs. Andfjord Salmon AS | Arctic Fish vs. Elkem ASA | Arctic Fish vs. Integrated Wind Solutions | Arctic Fish vs. Vow ASA |
| DNB NOR vs. Elkem ASA | DNB NOR vs. Integrated Wind Solutions | DNB NOR vs. Vow ASA | DNB NOR vs. North Energy ASA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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