Correlation Between Oslo Exchange and Norwegian Block
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By analyzing existing cross correlation between Oslo Exchange Mutual and Norwegian Block Exchange, you can compare the effects of market volatilities on Oslo Exchange and Norwegian Block 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 Norwegian Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Norwegian Block.
Diversification Opportunities for Oslo Exchange and Norwegian Block
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oslo and Norwegian is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Norwegian Block Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norwegian Block Exchange 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 Norwegian Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norwegian Block Exchange has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Norwegian Block go up and down completely randomly.
Pair Corralation between Oslo Exchange and Norwegian Block
Assuming the 90 days trading horizon Oslo Exchange Mutual is expected to generate 0.05 times more return on investment than Norwegian Block. However, Oslo Exchange Mutual is 19.75 times less risky than Norwegian Block. It trades about 0.1 of its potential returns per unit of risk. Norwegian Block Exchange is currently generating about -0.09 per unit of risk. If you would invest 138,987 in Oslo Exchange Mutual on September 1, 2024 and sell it today you would earn a total of 1,975 from holding Oslo Exchange Mutual or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. Norwegian Block Exchange
Performance |
| Timeline |
Oslo Exchange and Norwegian Block Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Norwegian Block Exchange
Pair trading matchups for Norwegian Block
Pair Trading with Oslo Exchange and Norwegian Block
The main advantage of trading using opposite Oslo Exchange and Norwegian Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, Norwegian Block 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 Norwegian Block will offset losses from the drop in Norwegian Block's long position.| Oslo Exchange vs. SD Standard Drilling | Oslo Exchange vs. Romsdal Sparebank | Oslo Exchange vs. Polaris Media | Oslo Exchange vs. Sunndal Sparebank |
| Norwegian Block vs. Bergen Carbon Solutions | Norwegian Block vs. Aker Horizons AS | Norwegian Block vs. North Energy ASA | Norwegian Block vs. Sparebanken Sor |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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