Correlation Between ODIN NORSK and Elkem ASA
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By analyzing existing cross correlation between ODIN NORSK OBLIGASJON and Elkem ASA, you can compare the effects of market volatilities on ODIN NORSK and Elkem ASA 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 ODIN NORSK with a short position of Elkem ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODIN NORSK and Elkem ASA.
Diversification Opportunities for ODIN NORSK and Elkem ASA
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ODIN and Elkem is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ODIN NORSK OBLIGASJON and Elkem ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkem ASA and ODIN NORSK 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 ODIN NORSK OBLIGASJON are associated (or correlated) with Elkem ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkem ASA has no effect on the direction of ODIN NORSK i.e., ODIN NORSK and Elkem ASA go up and down completely randomly.
Pair Corralation between ODIN NORSK and Elkem ASA
Assuming the 90 days trading horizon ODIN NORSK is expected to generate 4.89 times less return on investment than Elkem ASA. But when comparing it to its historical volatility, ODIN NORSK OBLIGASJON is 71.32 times less risky than Elkem ASA. It trades about 0.6 of its potential returns per unit of risk. Elkem ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Elkem ASA on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Elkem ASA or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ODIN NORSK OBLIGASJON vs. Elkem ASA
Performance |
| Timeline |
| ODIN NORSK OBLIGASJON |
| Elkem ASA |
ODIN NORSK and Elkem ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODIN NORSK and Elkem ASA
The main advantage of trading using opposite ODIN NORSK and Elkem ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODIN NORSK position performs unexpectedly, Elkem ASA 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 Elkem ASA will offset losses from the drop in Elkem ASA's long position.| ODIN NORSK vs. Elkem ASA | ODIN NORSK vs. DNB NOR KAPFORV | ODIN NORSK vs. Integrated Wind Solutions | ODIN NORSK vs. Vow ASA |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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