Correlation Between Norsk Hydro and Hugo Boss
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By analyzing existing cross correlation between Norsk Hydro ASA and Hugo Boss AG, you can compare the effects of market volatilities on Norsk Hydro and Hugo Boss 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 Norsk Hydro with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norsk Hydro and Hugo Boss.
Diversification Opportunities for Norsk Hydro and Hugo Boss
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Norsk and Hugo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Norsk Hydro ASA and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Norsk Hydro 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 Norsk Hydro ASA are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Norsk Hydro i.e., Norsk Hydro and Hugo Boss go up and down completely randomly.
Pair Corralation between Norsk Hydro and Hugo Boss
Assuming the 90 days trading horizon Norsk Hydro ASA is expected to generate 1.69 times more return on investment than Hugo Boss. However, Norsk Hydro is 1.69 times more volatile than Hugo Boss AG. It trades about 0.03 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.01 per unit of risk. If you would invest 404.00 in Norsk Hydro ASA on September 13, 2024 and sell it today you would earn a total of 162.00 from holding Norsk Hydro ASA or generate 40.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Norsk Hydro ASA vs. Hugo Boss AG
Performance |
| Timeline |
| Norsk Hydro ASA |
| Hugo Boss AG |
Norsk Hydro and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norsk Hydro and Hugo Boss
The main advantage of trading using opposite Norsk Hydro and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norsk Hydro position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Norsk Hydro vs. Goosehead Insurance | Norsk Hydro vs. RETAIL FOOD GROUP | Norsk Hydro vs. COSTCO WHOLESALE CDR | Norsk Hydro vs. SBI Insurance Group |
| Hugo Boss vs. Superior Plus Corp | Hugo Boss vs. SIVERS SEMICONDUCTORS AB | Hugo Boss vs. Norsk Hydro ASA | Hugo Boss vs. Reliance Steel Aluminum |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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