Correlation Between Dno ASA and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Dno ASA and Kolibri Global 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 Kolibri Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dno ASA and Kolibri Global Energy, you can compare the effects of market volatilities on Dno ASA and Kolibri Global 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 Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dno ASA and Kolibri Global.
Diversification Opportunities for Dno ASA and Kolibri Global
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dno and Kolibri is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dno ASA and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy 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 Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Dno ASA i.e., Dno ASA and Kolibri Global go up and down completely randomly.
Pair Corralation between Dno ASA and Kolibri Global
If you would invest 68.00 in Dno ASA on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Dno ASA or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.56% |
| Values | Daily Returns |
Dno ASA vs. Kolibri Global Energy
Performance |
| Timeline |
| Dno ASA |
| Kolibri Global Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dno ASA and Kolibri Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dno ASA and Kolibri Global
The main advantage of trading using opposite Dno ASA and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dno ASA position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.| Dno ASA vs. PetroShale | Dno ASA vs. Horizon Oil Limited | Dno ASA vs. Enwell Energy plc | Dno ASA vs. Tullow Oil plc |
| Kolibri Global vs. PetroShale | Kolibri Global vs. InPlay Oil Corp | Kolibri Global vs. Petrus Resources | Kolibri Global vs. Journey 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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