Correlation Between DNB NOR and Hunter Group
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By analyzing existing cross correlation between DNB NOR KAPFORV and Hunter Group ASA, you can compare the effects of market volatilities on DNB NOR and Hunter Group 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 DNB NOR with a short position of Hunter Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and Hunter Group.
Diversification Opportunities for DNB NOR and Hunter Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DNB and Hunter is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and Hunter Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Group ASA and DNB NOR 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 DNB NOR KAPFORV are associated (or correlated) with Hunter Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Group ASA has no effect on the direction of DNB NOR i.e., DNB NOR and Hunter Group go up and down completely randomly.
Pair Corralation between DNB NOR and Hunter Group
Assuming the 90 days trading horizon DNB NOR KAPFORV is expected to generate 0.02 times more return on investment than Hunter Group. However, DNB NOR KAPFORV is 40.09 times less risky than Hunter Group. It trades about 0.16 of its potential returns per unit of risk. Hunter Group ASA is currently generating about -0.01 per unit of risk. If you would invest 98,981 in DNB NOR KAPFORV on September 1, 2024 and sell it today you would earn a total of 10,732 from holding DNB NOR KAPFORV or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. Hunter Group ASA
Performance |
| Timeline |
| DNB NOR KAPFORV |
| Hunter Group ASA |
DNB NOR and Hunter Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and Hunter Group
The main advantage of trading using opposite DNB NOR and Hunter Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, Hunter Group 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 Hunter Group will offset losses from the drop in Hunter Group's long position.| DNB NOR vs. Elkem ASA | DNB NOR vs. Integrated Wind Solutions | DNB NOR vs. Vow ASA | DNB NOR vs. North Energy ASA |
| Hunter Group vs. Okeanis Eco Tankers | Hunter Group vs. Frontline | Hunter Group vs. BW LPG | Hunter Group vs. FLEX LNG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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