Correlation Between Otello ASA and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both Otello ASA and CIG PANNONIA 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 Otello ASA and CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otello ASA and CIG PANNONIA LIFE, you can compare the effects of market volatilities on Otello ASA and CIG PANNONIA 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 Otello ASA with a short position of CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otello ASA and CIG PANNONIA.
Diversification Opportunities for Otello ASA and CIG PANNONIA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Otello and CIG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Otello ASA and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE and Otello ASA 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 Otello ASA are associated (or correlated) with CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of Otello ASA i.e., Otello ASA and CIG PANNONIA go up and down completely randomly.
Pair Corralation between Otello ASA and CIG PANNONIA
Assuming the 90 days horizon Otello ASA is expected to generate 7.25 times less return on investment than CIG PANNONIA. But when comparing it to its historical volatility, Otello ASA is 1.29 times less risky than CIG PANNONIA. It trades about 0.08 of its potential returns per unit of risk. CIG PANNONIA LIFE is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 85.00 in CIG PANNONIA LIFE on October 25, 2024 and sell it today you would earn a total of 11.00 from holding CIG PANNONIA LIFE or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otello ASA vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| Otello ASA |
| CIG PANNONIA LIFE |
Otello ASA and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otello ASA and CIG PANNONIA
The main advantage of trading using opposite Otello ASA and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otello ASA position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.| Otello ASA vs. SILICON LABORATOR | Otello ASA vs. Suntory Beverage Food | Otello ASA vs. THAI BEVERAGE | Otello ASA vs. Sekisui Chemical Co |
| CIG PANNONIA vs. Diamyd Medical AB | CIG PANNONIA vs. Meli Hotels International | CIG PANNONIA vs. Park Hotels Resorts | CIG PANNONIA vs. Apollo Medical Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |