Correlation Between North Energy and Green Minerals
Can any of the company-specific risk be diversified away by investing in both North Energy and Green Minerals 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 North Energy and Green Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Energy ASA and Green Minerals AS, you can compare the effects of market volatilities on North Energy and Green Minerals 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 North Energy with a short position of Green Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Energy and Green Minerals.
Diversification Opportunities for North Energy and Green Minerals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between North and Green is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding North Energy ASA and Green Minerals AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Minerals AS and North Energy 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 North Energy ASA are associated (or correlated) with Green Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Minerals AS has no effect on the direction of North Energy i.e., North Energy and Green Minerals go up and down completely randomly.
Pair Corralation between North Energy and Green Minerals
Assuming the 90 days trading horizon North Energy ASA is expected to generate 0.53 times more return on investment than Green Minerals. However, North Energy ASA is 1.88 times less risky than Green Minerals. It trades about 0.05 of its potential returns per unit of risk. Green Minerals AS is currently generating about -0.07 per unit of risk. If you would invest 265.00 in North Energy ASA on September 1, 2024 and sell it today you would earn a total of 5.00 from holding North Energy ASA or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Energy ASA vs. Green Minerals AS
Performance |
| Timeline |
| North Energy ASA |
| Green Minerals AS |
North Energy and Green Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Energy and Green Minerals
The main advantage of trading using opposite North Energy and Green Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Energy position performs unexpectedly, Green Minerals 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 Green Minerals will offset losses from the drop in Green Minerals' long position.| North Energy vs. Skue Sparebank | North Energy vs. Aasen Sparebank | North Energy vs. Proximar Seafood AS | North Energy vs. Nidaros Sparebank |
| Green Minerals vs. Nordic Technology Group | Green Minerals vs. Morrow Bank ASA | Green Minerals vs. Odfjell Technology | Green Minerals vs. Sparebank 1 SMN |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |