Correlation Between Equinor ASA and DNB NOR
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By analyzing existing cross correlation between Equinor ASA and DNB NOR KAPFORV, you can compare the effects of market volatilities on Equinor ASA and DNB NOR 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 DNB NOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinor ASA and DNB NOR.
Diversification Opportunities for Equinor ASA and DNB NOR
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equinor and DNB is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Equinor ASA and DNB NOR KAPFORV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB NOR KAPFORV 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 DNB NOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB NOR KAPFORV has no effect on the direction of Equinor ASA i.e., Equinor ASA and DNB NOR go up and down completely randomly.
Pair Corralation between Equinor ASA and DNB NOR
Assuming the 90 days trading horizon Equinor ASA is expected to generate 1.12 times less return on investment than DNB NOR. In addition to that, Equinor ASA is 9.09 times more volatile than DNB NOR KAPFORV. It trades about 0.01 of its total potential returns per unit of risk. DNB NOR KAPFORV is currently generating about 0.11 per unit of volatility. If you would invest 100,929 in DNB NOR KAPFORV on August 29, 2024 and sell it today you would earn a total of 8,172 from holding DNB NOR KAPFORV or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Equinor ASA vs. DNB NOR KAPFORV
Performance |
| Timeline |
| Equinor ASA |
| DNB NOR KAPFORV |
Equinor ASA and DNB NOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinor ASA and DNB NOR
The main advantage of trading using opposite Equinor ASA and DNB NOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinor ASA position performs unexpectedly, DNB NOR 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 DNB NOR will offset losses from the drop in DNB NOR's long position.| Equinor ASA vs. DnB ASA | Equinor ASA vs. Mowi ASA | Equinor ASA vs. Yara International ASA | Equinor ASA vs. Telenor ASA |
| DNB NOR vs. Elkem ASA | DNB NOR vs. Integrated Wind Solutions | DNB NOR vs. Vow ASA | DNB NOR vs. North Energy 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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