Correlation Between NorAm Drilling and Visa
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By analyzing existing cross correlation between NorAm Drilling AS and Visa Inc, you can compare the effects of market volatilities on NorAm Drilling and Visa 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 NorAm Drilling with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorAm Drilling and Visa.
Diversification Opportunities for NorAm Drilling and Visa
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NorAm and Visa is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NorAm Drilling AS and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc and NorAm Drilling 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 NorAm Drilling AS are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of NorAm Drilling i.e., NorAm Drilling and Visa go up and down completely randomly.
Pair Corralation between NorAm Drilling and Visa
Assuming the 90 days horizon NorAm Drilling AS is expected to generate 8.41 times more return on investment than Visa. However, NorAm Drilling is 8.41 times more volatile than Visa Inc. It trades about 0.04 of its potential returns per unit of risk. Visa Inc is currently generating about 0.04 per unit of risk. If you would invest 284.00 in NorAm Drilling AS on October 12, 2024 and sell it today you would earn a total of 3.00 from holding NorAm Drilling AS or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
NorAm Drilling AS vs. Visa Inc
Performance |
| Timeline |
| NorAm Drilling AS |
| Visa Inc |
NorAm Drilling and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NorAm Drilling and Visa
The main advantage of trading using opposite NorAm Drilling and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorAm Drilling position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| NorAm Drilling vs. SPORT LISBOA E | NorAm Drilling vs. Marie Brizard Wine | NorAm Drilling vs. Gaztransport Technigaz SA | NorAm Drilling vs. Air Transport Services |
| Visa vs. GOLD ROAD RES | Visa vs. GMO Internet | Visa vs. Yuexiu Transport Infrastructure | Visa vs. Liberty Broadband |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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