Correlation Between DNB NOR and Integrated Wind
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By analyzing existing cross correlation between DNB NOR KAPFORV and Integrated Wind Solutions, you can compare the effects of market volatilities on DNB NOR and Integrated Wind 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 Integrated Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and Integrated Wind.
Diversification Opportunities for DNB NOR and Integrated Wind
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between DNB and Integrated is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and Integrated Wind Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Wind Solutions 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 Integrated Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Wind Solutions has no effect on the direction of DNB NOR i.e., DNB NOR and Integrated Wind go up and down completely randomly.
Pair Corralation between DNB NOR and Integrated Wind
Assuming the 90 days trading horizon DNB NOR KAPFORV is expected to generate 0.07 times more return on investment than Integrated Wind. However, DNB NOR KAPFORV is 13.68 times less risky than Integrated Wind. It trades about 0.47 of its potential returns per unit of risk. Integrated Wind Solutions is currently generating about -0.08 per unit of risk. If you would invest 108,356 in DNB NOR KAPFORV on September 1, 2024 and sell it today you would earn a total of 1,417 from holding DNB NOR KAPFORV or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. Integrated Wind Solutions
Performance |
| Timeline |
| DNB NOR KAPFORV |
| Integrated Wind Solutions |
DNB NOR and Integrated Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and Integrated Wind
The main advantage of trading using opposite DNB NOR and Integrated Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, Integrated Wind 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 Integrated Wind will offset losses from the drop in Integrated Wind'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 |
| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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