Correlation Between DNB NOR and Nordic Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between DNB NOR KAPFORV and Nordic Mining ASA, you can compare the effects of market volatilities on DNB NOR and Nordic Mining 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 Nordic Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and Nordic Mining.
Diversification Opportunities for DNB NOR and Nordic Mining
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DNB and Nordic is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and Nordic Mining ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Mining 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 Nordic Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Mining ASA has no effect on the direction of DNB NOR i.e., DNB NOR and Nordic Mining go up and down completely randomly.
Pair Corralation between DNB NOR and Nordic Mining
Assuming the 90 days trading horizon DNB NOR KAPFORV is expected to generate 0.07 times more return on investment than Nordic Mining. However, DNB NOR KAPFORV is 13.35 times less risky than Nordic Mining. It trades about 0.13 of its potential returns per unit of risk. Nordic Mining ASA is currently generating about -0.06 per unit of risk. If you would invest 108,916 in DNB NOR KAPFORV on August 29, 2024 and sell it today you would earn a total of 467.00 from holding DNB NOR KAPFORV or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. Nordic Mining ASA
Performance |
| Timeline |
| DNB NOR KAPFORV |
| Nordic Mining ASA |
DNB NOR and Nordic Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and Nordic Mining
The main advantage of trading using opposite DNB NOR and Nordic Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, Nordic Mining 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 Nordic Mining will offset losses from the drop in Nordic Mining's long position.The idea behind DNB NOR KAPFORV and Nordic Mining ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nordic Mining vs. Elkem ASA | Nordic Mining vs. DNB NOR KAPFORV | Nordic Mining vs. Integrated Wind Solutions | Nordic Mining vs. Vow 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |