Correlation Between Oslo Exchange and Bewi Asa
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By analyzing existing cross correlation between Oslo Exchange Mutual and Bewi Asa, you can compare the effects of market volatilities on Oslo Exchange and Bewi Asa 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 Oslo Exchange with a short position of Bewi Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Bewi Asa.
Diversification Opportunities for Oslo Exchange and Bewi Asa
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oslo and Bewi is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Bewi Asa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bewi Asa and Oslo Exchange 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 Oslo Exchange Mutual are associated (or correlated) with Bewi Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bewi Asa has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Bewi Asa go up and down completely randomly.
Pair Corralation between Oslo Exchange and Bewi Asa
Assuming the 90 days trading horizon Oslo Exchange Mutual is expected to generate 0.28 times more return on investment than Bewi Asa. However, Oslo Exchange Mutual is 3.63 times less risky than Bewi Asa. It trades about 0.06 of its potential returns per unit of risk. Bewi Asa is currently generating about -0.04 per unit of risk. If you would invest 114,130 in Oslo Exchange Mutual on September 3, 2024 and sell it today you would earn a total of 26,876 from holding Oslo Exchange Mutual or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. Bewi Asa
Performance |
| Timeline |
Oslo Exchange and Bewi Asa Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Bewi Asa
Pair trading matchups for Bewi Asa
Pair Trading with Oslo Exchange and Bewi Asa
The main advantage of trading using opposite Oslo Exchange and Bewi Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, Bewi Asa 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 Bewi Asa will offset losses from the drop in Bewi Asa's long position.| Oslo Exchange vs. Austevoll Seafood ASA | Oslo Exchange vs. Grong Sparebank | Oslo Exchange vs. Aurskog Sparebank | Oslo Exchange vs. Sogn Sparebank |
| Bewi Asa vs. Kitron ASA | Bewi Asa vs. Norske Skog Asa | Bewi Asa vs. AF Gruppen ASA | Bewi Asa vs. Elkem ASA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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