Correlation Between Oslo Exchange and Tomra Systems
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By analyzing existing cross correlation between Oslo Exchange Mutual and Tomra Systems ASA, you can compare the effects of market volatilities on Oslo Exchange and Tomra Systems 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 Tomra Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Tomra Systems.
Diversification Opportunities for Oslo Exchange and Tomra Systems
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oslo and Tomra is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Tomra Systems ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tomra Systems 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 Tomra Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tomra Systems ASA has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Tomra Systems go up and down completely randomly.
Pair Corralation between Oslo Exchange and Tomra Systems
Assuming the 90 days trading horizon Oslo Exchange Mutual is expected to generate 0.3 times more return on investment than Tomra Systems. However, Oslo Exchange Mutual is 3.35 times less risky than Tomra Systems. It trades about 0.1 of its potential returns per unit of risk. Tomra Systems ASA is currently generating about -0.19 per unit of risk. If you would invest 140,143 in Oslo Exchange Mutual on August 25, 2024 and sell it today you would earn a total of 2,090 from holding Oslo Exchange Mutual or generate 1.49% 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. Tomra Systems ASA
Performance |
| Timeline |
Oslo Exchange and Tomra Systems Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Tomra Systems ASA
Pair trading matchups for Tomra Systems
Pair Trading with Oslo Exchange and Tomra Systems
The main advantage of trading using opposite Oslo Exchange and Tomra Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, Tomra Systems 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 Tomra Systems will offset losses from the drop in Tomra Systems' long position.| Oslo Exchange vs. NorAm Drilling AS | Oslo Exchange vs. SD Standard Drilling | Oslo Exchange vs. Sparebank 1 SMN | Oslo Exchange vs. Helgeland Sparebank |
| Tomra Systems vs. Eidesvik Offshore ASA | Tomra Systems vs. Kitron ASA | Tomra Systems vs. Havila Shipping ASA | Tomra Systems 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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