Correlation Between Nordic Mining and Bien Sparebank
Can any of the company-specific risk be diversified away by investing in both Nordic Mining and Bien Sparebank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nordic Mining and Bien Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Mining ASA and Bien Sparebank ASA, you can compare the effects of market volatilities on Nordic Mining and Bien Sparebank 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 Nordic Mining with a short position of Bien Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Mining and Bien Sparebank.
Diversification Opportunities for Nordic Mining and Bien Sparebank
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and Bien is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Mining ASA and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA and Nordic Mining 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 Nordic Mining ASA are associated (or correlated) with Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of Nordic Mining i.e., Nordic Mining and Bien Sparebank go up and down completely randomly.
Pair Corralation between Nordic Mining and Bien Sparebank
Assuming the 90 days trading horizon Nordic Mining is expected to generate 2.92 times less return on investment than Bien Sparebank. In addition to that, Nordic Mining is 2.46 times more volatile than Bien Sparebank ASA. It trades about 0.01 of its total potential returns per unit of risk. Bien Sparebank ASA is currently generating about 0.07 per unit of volatility. If you would invest 8,770 in Bien Sparebank ASA on November 2, 2024 and sell it today you would earn a total of 4,230 from holding Bien Sparebank ASA or generate 48.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Mining ASA vs. Bien Sparebank ASA
Performance |
| Timeline |
| Nordic Mining ASA |
| Bien Sparebank ASA |
Nordic Mining and Bien Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Mining and Bien Sparebank
The main advantage of trading using opposite Nordic Mining and Bien Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Mining position performs unexpectedly, Bien Sparebank 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 Bien Sparebank will offset losses from the drop in Bien Sparebank's long position.| Nordic Mining vs. Polaris Media | Nordic Mining vs. Cloudberry Clean Energy | Nordic Mining vs. Napatech AS | Nordic Mining vs. BW Offshore |
| Bien Sparebank vs. SD Standard Drilling | Bien Sparebank vs. Nordhealth AS | Bien Sparebank vs. Eidesvik Offshore ASA | Bien Sparebank vs. Odfjell Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |