Correlation Between DNB NOR and Stolt Nielsen
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By analyzing existing cross correlation between DNB NOR KAPFORV and Stolt Nielsen Limited, you can compare the effects of market volatilities on DNB NOR and Stolt Nielsen 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 Stolt Nielsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and Stolt Nielsen.
Diversification Opportunities for DNB NOR and Stolt Nielsen
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DNB and Stolt is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and Stolt Nielsen Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stolt Nielsen Limited 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 Stolt Nielsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stolt Nielsen Limited has no effect on the direction of DNB NOR i.e., DNB NOR and Stolt Nielsen go up and down completely randomly.
Pair Corralation between DNB NOR and Stolt Nielsen
Assuming the 90 days trading horizon DNB NOR KAPFORV is expected to generate 0.09 times more return on investment than Stolt Nielsen. However, DNB NOR KAPFORV is 10.86 times less risky than Stolt Nielsen. It trades about 0.17 of its potential returns per unit of risk. Stolt Nielsen Limited is currently generating about -0.06 per unit of risk. If you would invest 103,589 in DNB NOR KAPFORV on September 1, 2024 and sell it today you would earn a total of 6,184 from holding DNB NOR KAPFORV or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. Stolt Nielsen Limited
Performance |
| Timeline |
| DNB NOR KAPFORV |
| Stolt Nielsen Limited |
DNB NOR and Stolt Nielsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and Stolt Nielsen
The main advantage of trading using opposite DNB NOR and Stolt Nielsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, Stolt Nielsen 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 Stolt Nielsen will offset losses from the drop in Stolt Nielsen'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 |
| Stolt Nielsen vs. Nordic Mining ASA | Stolt Nielsen vs. Romerike Sparebank | Stolt Nielsen vs. Norwegian Air Shuttle | Stolt Nielsen vs. Xplora Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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