Correlation Between Panoro Energy and Itera ASA
Can any of the company-specific risk be diversified away by investing in both Panoro Energy and Itera 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 Panoro Energy and Itera ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panoro Energy ASA and Itera ASA, you can compare the effects of market volatilities on Panoro Energy and Itera 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 Panoro Energy with a short position of Itera ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panoro Energy and Itera ASA.
Diversification Opportunities for Panoro Energy and Itera ASA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panoro and Itera is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Panoro Energy ASA and Itera ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itera ASA and Panoro Energy 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 Panoro Energy ASA are associated (or correlated) with Itera ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itera ASA has no effect on the direction of Panoro Energy i.e., Panoro Energy and Itera ASA go up and down completely randomly.
Pair Corralation between Panoro Energy and Itera ASA
Assuming the 90 days trading horizon Panoro Energy ASA is expected to generate 0.94 times more return on investment than Itera ASA. However, Panoro Energy ASA is 1.06 times less risky than Itera ASA. It trades about 0.01 of its potential returns per unit of risk. Itera ASA is currently generating about -0.01 per unit of risk. If you would invest 2,850 in Panoro Energy ASA on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Panoro Energy ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panoro Energy ASA vs. Itera ASA
Performance |
| Timeline |
| Panoro Energy ASA |
| Itera ASA |
Panoro Energy and Itera ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panoro Energy and Itera ASA
The main advantage of trading using opposite Panoro Energy and Itera ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panoro Energy position performs unexpectedly, Itera 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 Itera ASA will offset losses from the drop in Itera ASA's long position.| Panoro Energy vs. BW Energy | Panoro Energy vs. Dno ASA | Panoro Energy vs. BW Offshore | Panoro Energy vs. 2020 Bulkers |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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