Correlation Between Dno ASA and Dana
Can any of the company-specific risk be diversified away by investing in both Dno ASA and Dana 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 Dno ASA and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dno ASA and Dana Inc, you can compare the effects of market volatilities on Dno ASA and Dana 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 Dno ASA with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dno ASA and Dana.
Diversification Opportunities for Dno ASA and Dana
Very good diversification
The 3 months correlation between Dno and Dana is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dno ASA and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Dno 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 Dno ASA are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Dno ASA i.e., Dno ASA and Dana go up and down completely randomly.
Pair Corralation between Dno ASA and Dana
Assuming the 90 days horizon Dno ASA is expected to generate 2.83 times less return on investment than Dana. But when comparing it to its historical volatility, Dno ASA is 1.66 times less risky than Dana. It trades about 0.14 of its potential returns per unit of risk. Dana Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Dana Inc on October 20, 2024 and sell it today you would earn a total of 130.00 from holding Dana Inc or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dno ASA vs. Dana Inc
Performance |
| Timeline |
| Dno ASA |
| Dana Inc |
Dno ASA and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dno ASA and Dana
The main advantage of trading using opposite Dno ASA and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dno ASA position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Dno ASA vs. HYATT HOTELS A | Dno ASA vs. GMO Internet | Dno ASA vs. Computershare Limited | Dno ASA vs. COVIVIO HOTELS INH |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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