Correlation Between DnB ASA and 2020 Bulkers
Can any of the company-specific risk be diversified away by investing in both DnB ASA and 2020 Bulkers 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 DnB ASA and 2020 Bulkers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DnB ASA and 2020 Bulkers, you can compare the effects of market volatilities on DnB ASA and 2020 Bulkers 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 DnB ASA with a short position of 2020 Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of DnB ASA and 2020 Bulkers.
Diversification Opportunities for DnB ASA and 2020 Bulkers
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DnB and 2020 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DnB ASA and 2020 Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2020 Bulkers and DnB ASA 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 DnB ASA are associated (or correlated) with 2020 Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2020 Bulkers has no effect on the direction of DnB ASA i.e., DnB ASA and 2020 Bulkers go up and down completely randomly.
Pair Corralation between DnB ASA and 2020 Bulkers
Assuming the 90 days trading horizon DnB ASA is expected to under-perform the 2020 Bulkers. But the stock apears to be less risky and, when comparing its historical volatility, DnB ASA is 3.04 times less risky than 2020 Bulkers. The stock trades about 0.0 of its potential returns per unit of risk. The 2020 Bulkers is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 13,037 in 2020 Bulkers on August 29, 2024 and sell it today you would earn a total of 243.00 from holding 2020 Bulkers or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DnB ASA vs. 2020 Bulkers
Performance |
| Timeline |
| DnB ASA |
| 2020 Bulkers |
DnB ASA and 2020 Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DnB ASA and 2020 Bulkers
The main advantage of trading using opposite DnB ASA and 2020 Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DnB ASA position performs unexpectedly, 2020 Bulkers 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 2020 Bulkers will offset losses from the drop in 2020 Bulkers' long position.| DnB ASA vs. Telenor ASA | DnB ASA vs. Storebrand ASA | DnB ASA vs. Orkla ASA | DnB ASA vs. Gjensidige Forsikring ASA |
| 2020 Bulkers vs. Shelf Drilling | 2020 Bulkers vs. Solstad Offsho | 2020 Bulkers vs. Eidesvik Offshore ASA | 2020 Bulkers vs. Elkem 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |