Correlation Between Ocean Sun and Vow ASA
Can any of the company-specific risk be diversified away by investing in both Ocean Sun and Vow ASA 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 Vow ASA 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 Vow ASA, you can compare the effects of market volatilities on Ocean Sun and Vow 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 Ocean Sun with a short position of Vow ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Sun and Vow ASA.
Diversification Opportunities for Ocean Sun and Vow ASA
Average diversification
The 3 months correlation between Ocean and Vow is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Sun As and Vow ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vow ASA 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 Vow ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vow ASA has no effect on the direction of Ocean Sun i.e., Ocean Sun and Vow ASA go up and down completely randomly.
Pair Corralation between Ocean Sun and Vow ASA
Assuming the 90 days trading horizon Ocean Sun As is expected to generate 0.98 times more return on investment than Vow ASA. However, Ocean Sun As is 1.02 times less risky than Vow ASA. It trades about -0.03 of its potential returns per unit of risk. Vow ASA is currently generating about -0.08 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Sun As vs. Vow ASA
Performance |
| Timeline |
| Ocean Sun As |
| Vow ASA |
Ocean Sun and Vow ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Sun and Vow ASA
The main advantage of trading using opposite Ocean Sun and Vow ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Sun position performs unexpectedly, Vow 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 Vow ASA will offset losses from the drop in Vow ASA's long position.| Ocean Sun vs. Bonheur | Ocean Sun vs. Scatec Solar OL | Ocean Sun vs. Aker Carbon Capture | Ocean Sun vs. Cadeler As |
| Vow ASA vs. Hexagon Composites ASA | Vow ASA vs. Vow Green Metals | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Aker Carbon Capture |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |