Correlation Between Equinor ASA and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both Equinor ASA and Biofish Holding 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 Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinor ASA and Biofish Holding AS, you can compare the effects of market volatilities on Equinor ASA and Biofish Holding 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 Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinor ASA and Biofish Holding.
Diversification Opportunities for Equinor ASA and Biofish Holding
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Equinor and Biofish is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Equinor ASA and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS 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 Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of Equinor ASA i.e., Equinor ASA and Biofish Holding go up and down completely randomly.
Pair Corralation between Equinor ASA and Biofish Holding
Assuming the 90 days trading horizon Equinor ASA is expected to generate 0.89 times more return on investment than Biofish Holding. However, Equinor ASA is 1.13 times less risky than Biofish Holding. It trades about 0.02 of its potential returns per unit of risk. Biofish Holding AS is currently generating about 0.02 per unit of risk. If you would invest 25,989 in Equinor ASA on September 12, 2024 and sell it today you would earn a total of 471.00 from holding Equinor ASA or generate 1.81% 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. Biofish Holding AS
Performance |
| Timeline |
| Equinor ASA |
| Biofish Holding AS |
Equinor ASA and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinor ASA and Biofish Holding
The main advantage of trading using opposite Equinor ASA and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinor ASA position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| Equinor ASA vs. Solstad Offsho | Equinor ASA vs. Prosafe SE | Equinor ASA vs. BW Offshore | Equinor ASA vs. Kongsberg Gruppen ASA |
| Biofish Holding vs. Hynion AS | Biofish Holding vs. Icelandic Salmon As | Biofish Holding vs. Ensurge Micropower ASA | Biofish Holding vs. Gigante Salmon AS |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |