Correlation Between Equinor ASA and Datalogic SpA
Can any of the company-specific risk be diversified away by investing in both Equinor ASA and Datalogic SpA 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 Equinor ASA and Datalogic SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinor ASA and Datalogic SpA, you can compare the effects of market volatilities on Equinor ASA and Datalogic SpA 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 Equinor ASA with a short position of Datalogic SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinor ASA and Datalogic SpA.
Diversification Opportunities for Equinor ASA and Datalogic SpA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Equinor and Datalogic is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Equinor ASA and Datalogic SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datalogic SpA and Equinor 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 Equinor ASA are associated (or correlated) with Datalogic SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datalogic SpA has no effect on the direction of Equinor ASA i.e., Equinor ASA and Datalogic SpA go up and down completely randomly.
Pair Corralation between Equinor ASA and Datalogic SpA
Assuming the 90 days horizon Equinor ASA is expected to generate 1.71 times more return on investment than Datalogic SpA. However, Equinor ASA is 1.71 times more volatile than Datalogic SpA. It trades about 0.31 of its potential returns per unit of risk. Datalogic SpA is currently generating about -0.27 per unit of risk. If you would invest 2,219 in Equinor ASA on October 14, 2024 and sell it today you would earn a total of 271.00 from holding Equinor ASA or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinor ASA vs. Datalogic SpA
Performance |
| Timeline |
| Equinor ASA |
| Datalogic SpA |
Equinor ASA and Datalogic SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinor ASA and Datalogic SpA
The main advantage of trading using opposite Equinor ASA and Datalogic SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinor ASA position performs unexpectedly, Datalogic SpA 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 Datalogic SpA will offset losses from the drop in Datalogic SpA's long position.| Equinor ASA vs. LG Display Co | Equinor ASA vs. Playtech plc | Equinor ASA vs. Harmony Gold Mining | Equinor ASA vs. Stag Industrial |
| Datalogic SpA vs. Transport International Holdings | Datalogic SpA vs. Air Transport Services | Datalogic SpA vs. United Airlines Holdings | Datalogic SpA vs. China Eastern Airlines |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |