Correlation Between Ocean Sun and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both Ocean Sun and Arcticzymes Technologies 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 Ocean Sun and Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Sun As and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Ocean Sun and Arcticzymes Technologies 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 Ocean Sun with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Sun and Arcticzymes Technologies.
Diversification Opportunities for Ocean Sun and Arcticzymes Technologies
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ocean and Arcticzymes is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Sun As and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies and Ocean Sun 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 Ocean Sun As are associated (or correlated) with Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of Ocean Sun i.e., Ocean Sun and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between Ocean Sun and Arcticzymes Technologies
Assuming the 90 days trading horizon Ocean Sun As is expected to generate 1.46 times more return on investment than Arcticzymes Technologies. However, Ocean Sun is 1.46 times more volatile than Arcticzymes Technologies ASA. It trades about -0.03 of its potential returns per unit of risk. Arcticzymes Technologies ASA is currently generating about -0.09 per unit of risk. If you would invest 726.00 in Ocean Sun As on September 3, 2024 and sell it today you would lose (537.00) from holding Ocean Sun As or give up 73.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Sun As vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| Ocean Sun As |
| Arcticzymes Technologies |
Ocean Sun and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Sun and Arcticzymes Technologies
The main advantage of trading using opposite Ocean Sun and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Sun position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| Ocean Sun vs. Bonheur | Ocean Sun vs. Scatec Solar OL | Ocean Sun vs. Aker Carbon Capture | Ocean Sun vs. Cadeler As |
| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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