Correlation Between AutoStore Holdings and Var Energi
Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Var Energi 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 Var Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AutoStore Holdings and Var Energi ASA, you can compare the effects of market volatilities on AutoStore Holdings and Var Energi 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 Var Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Var Energi.
Diversification Opportunities for AutoStore Holdings and Var Energi
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AutoStore and Var is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Var Energi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Var Energi 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 Var Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Var Energi ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Var Energi go up and down completely randomly.
Pair Corralation between AutoStore Holdings and Var Energi
Assuming the 90 days trading horizon AutoStore Holdings is expected to under-perform the Var Energi. In addition to that, AutoStore Holdings is 1.94 times more volatile than Var Energi ASA. It trades about -0.02 of its total potential returns per unit of risk. Var Energi ASA is currently generating about 0.05 per unit of volatility. If you would invest 2,314 in Var Energi ASA on November 2, 2024 and sell it today you would earn a total of 1,128 from holding Var Energi ASA or generate 48.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AutoStore Holdings vs. Var Energi ASA
Performance |
| Timeline |
| AutoStore Holdings |
| Var Energi ASA |
AutoStore Holdings and Var Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AutoStore Holdings and Var Energi
The main advantage of trading using opposite AutoStore Holdings and Var Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Var Energi 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 Var Energi will offset losses from the drop in Var Energi'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 |
| Var Energi vs. Aker BP ASA | Var Energi vs. Belships | Var Energi vs. MPC Container Ships | Var Energi vs. BW Energy |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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