Correlation Between Oslo Exchange and Elopak AS
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By analyzing existing cross correlation between Oslo Exchange Mutual and Elopak AS, you can compare the effects of market volatilities on Oslo Exchange and Elopak AS 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 Elopak AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Elopak AS.
Diversification Opportunities for Oslo Exchange and Elopak AS
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oslo and Elopak is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Elopak AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elopak AS 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 Elopak AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elopak AS has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Elopak AS go up and down completely randomly.
Pair Corralation between Oslo Exchange and Elopak AS
Assuming the 90 days trading horizon Oslo Exchange is expected to generate 3.29 times less return on investment than Elopak AS. But when comparing it to its historical volatility, Oslo Exchange Mutual is 2.5 times less risky than Elopak AS. It trades about 0.06 of its potential returns per unit of risk. Elopak AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,299 in Elopak AS on September 3, 2024 and sell it today you would earn a total of 2,096 from holding Elopak AS or generate 91.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. Elopak AS
Performance |
| Timeline |
Oslo Exchange and Elopak AS Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Elopak AS
Pair trading matchups for Elopak AS
Pair Trading with Oslo Exchange and Elopak AS
The main advantage of trading using opposite Oslo Exchange and Elopak AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, Elopak AS 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 Elopak AS will offset losses from the drop in Elopak AS's long position.| Oslo Exchange vs. Austevoll Seafood ASA | Oslo Exchange vs. Grong Sparebank | Oslo Exchange vs. Aurskog Sparebank | Oslo Exchange vs. Sogn Sparebank |
| Elopak AS vs. Elkem ASA | Elopak AS vs. Norske Skog Asa | Elopak AS vs. Kitron ASA | Elopak AS vs. Europris 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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