Correlation Between DNB NOR and ARCTIC HIGH
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By analyzing existing cross correlation between DNB NOR KAPFORV and ARCTIC HIGH RETURN, you can compare the effects of market volatilities on DNB NOR and ARCTIC HIGH 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 ARCTIC HIGH. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and ARCTIC HIGH.
Diversification Opportunities for DNB NOR and ARCTIC HIGH
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DNB and ARCTIC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and ARCTIC HIGH RETURN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARCTIC HIGH RETURN 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 ARCTIC HIGH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARCTIC HIGH RETURN has no effect on the direction of DNB NOR i.e., DNB NOR and ARCTIC HIGH go up and down completely randomly.
Pair Corralation between DNB NOR and ARCTIC HIGH
Assuming the 90 days trading horizon DNB NOR is expected to generate 6.57 times less return on investment than ARCTIC HIGH. In addition to that, DNB NOR is 1.05 times more volatile than ARCTIC HIGH RETURN. It trades about 0.02 of its total potential returns per unit of risk. ARCTIC HIGH RETURN is currently generating about 0.13 per unit of volatility. If you would invest 201,922 in ARCTIC HIGH RETURN on August 28, 2024 and sell it today you would earn a total of 741.00 from holding ARCTIC HIGH RETURN or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. ARCTIC HIGH RETURN
Performance |
| Timeline |
| DNB NOR KAPFORV |
| ARCTIC HIGH RETURN |
DNB NOR and ARCTIC HIGH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and ARCTIC HIGH
The main advantage of trading using opposite DNB NOR and ARCTIC HIGH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, ARCTIC HIGH 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 ARCTIC HIGH will offset losses from the drop in ARCTIC HIGH'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 |
| ARCTIC HIGH vs. DNB NOR KAPFORV | ARCTIC HIGH vs. SKAGEN AVKASTNING | ARCTIC HIGH vs. ODIN NORSK OBLIGASJON |
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 Stocks Directory module to find actively traded stocks across global markets.
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