Correlation Between Onxeo SA and Norsk Hydro
Can any of the company-specific risk be diversified away by investing in both Onxeo SA and Norsk Hydro 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 Onxeo SA and Norsk Hydro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onxeo SA and Norsk Hydro ASA, you can compare the effects of market volatilities on Onxeo SA and Norsk Hydro 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 Onxeo SA with a short position of Norsk Hydro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onxeo SA and Norsk Hydro.
Diversification Opportunities for Onxeo SA and Norsk Hydro
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Onxeo and Norsk is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Onxeo SA and Norsk Hydro ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norsk Hydro ASA and Onxeo SA 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 Onxeo SA are associated (or correlated) with Norsk Hydro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norsk Hydro ASA has no effect on the direction of Onxeo SA i.e., Onxeo SA and Norsk Hydro go up and down completely randomly.
Pair Corralation between Onxeo SA and Norsk Hydro
Assuming the 90 days horizon Onxeo SA is expected to under-perform the Norsk Hydro. In addition to that, Onxeo SA is 2.15 times more volatile than Norsk Hydro ASA. It trades about -0.07 of its total potential returns per unit of risk. Norsk Hydro ASA is currently generating about 0.07 per unit of volatility. If you would invest 552.00 in Norsk Hydro ASA on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Norsk Hydro ASA or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onxeo SA vs. Norsk Hydro ASA
Performance |
| Timeline |
| Onxeo SA |
| Norsk Hydro ASA |
Onxeo SA and Norsk Hydro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onxeo SA and Norsk Hydro
The main advantage of trading using opposite Onxeo SA and Norsk Hydro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onxeo SA position performs unexpectedly, Norsk Hydro 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 Norsk Hydro will offset losses from the drop in Norsk Hydro's long position.| Onxeo SA vs. Moderna | Onxeo SA vs. BioNTech SE | Onxeo SA vs. Superior Plus Corp | Onxeo SA vs. SIVERS SEMICONDUCTORS AB |
| Norsk Hydro vs. Goosehead Insurance | Norsk Hydro vs. RETAIL FOOD GROUP | Norsk Hydro vs. COSTCO WHOLESALE CDR | Norsk Hydro vs. SBI Insurance 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |