Correlation Between AutoStore Holdings and Equinor ASA
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Equinor ASA 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 AutoStore Holdings and Equinor ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Equinor ASA, you can compare the effects of market volatilities on AutoStore Holdings and Equinor ASA 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 AutoStore Holdings with a short position of Equinor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Equinor ASA.
Diversification Opportunities for AutoStore Holdings and Equinor ASA
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoStore and Equinor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Equinor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinor ASA and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Equinor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinor ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Equinor ASA go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Equinor ASA
Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 1.48 times more return on investment than Equinor ASA. However, AutoStore Holdings is 1.48 times more volatile than Equinor ASA. It trades about 0.12 of its potential returns per unit of risk. Equinor ASA is currently generating about -0.04 per unit of risk. If you would invest 1,034 in AutoStore Holdings on November 27, 2024 and sell it today you would earn a total of 72.00 from holding AutoStore Holdings or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Equinor ASA
Performance |
| Timeline |
| AutoStore Holdings |
| Equinor ASA |
AutoStore Holdings and Equinor ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Equinor ASA
The main advantage of trading using opposite AutoStore Holdings and Equinor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Equinor ASA 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 Equinor ASA will offset losses from the drop in Equinor ASA's long position.| AutoStore Holdings vs. Nordic Semiconductor ASA | AutoStore Holdings vs. Aker BP ASA | AutoStore Holdings vs. SalMar ASA | AutoStore Holdings vs. Scatec Solar OL |
| Equinor ASA vs. DnB ASA | Equinor ASA vs. Mowi ASA | Equinor ASA vs. Yara International ASA | Equinor ASA vs. Telenor 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |