Correlation Between Philip Morris and NORSK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Philip Morris International and NORSK HYDRO A, you can compare the effects of market volatilities on Philip Morris and NORSK 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 Philip Morris with a short position of NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and NORSK.
Diversification Opportunities for Philip Morris and NORSK
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philip and NORSK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A and Philip Morris 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 Philip Morris International are associated (or correlated) with NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of Philip Morris i.e., Philip Morris and NORSK go up and down completely randomly.
Pair Corralation between Philip Morris and NORSK
Allowing for the 90-day total investment horizon Philip Morris International is expected to generate 4.99 times more return on investment than NORSK. However, Philip Morris is 4.99 times more volatile than NORSK HYDRO A. It trades about 0.17 of its potential returns per unit of risk. NORSK HYDRO A is currently generating about 0.02 per unit of risk. If you would invest 9,897 in Philip Morris International on August 29, 2024 and sell it today you would earn a total of 3,331 from holding Philip Morris International or generate 33.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 64.0% |
| Values | Daily Returns |
Philip Morris International vs. NORSK HYDRO A
Performance |
| Timeline |
| Philip Morris Intern |
| NORSK HYDRO A |
Philip Morris and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and NORSK
The main advantage of trading using opposite Philip Morris and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK's long position.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
| NORSK vs. Skechers USA | NORSK vs. Lion One Metals | NORSK vs. Citi Trends | NORSK vs. Inflection Point Acquisition |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |