Correlation Between NorAm Drilling and INTERSHOP Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between NorAm Drilling AS and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on NorAm Drilling and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorAm Drilling and INTERSHOP Communications.
Diversification Opportunities for NorAm Drilling and INTERSHOP Communications
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NorAm and INTERSHOP is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding NorAm Drilling AS and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of NorAm Drilling i.e., NorAm Drilling and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between NorAm Drilling and INTERSHOP Communications
Assuming the 90 days trading horizon NorAm Drilling AS is expected to generate 2.04 times more return on investment than INTERSHOP Communications. However, NorAm Drilling is 2.04 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.12 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.05 per unit of risk. If you would invest 295.00 in NorAm Drilling AS on October 16, 2024 and sell it today you would earn a total of 18.00 from holding NorAm Drilling AS or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NorAm Drilling AS vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| NorAm Drilling AS |
| INTERSHOP Communications |
NorAm Drilling and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NorAm Drilling and INTERSHOP Communications
The main advantage of trading using opposite NorAm Drilling and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorAm Drilling position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| NorAm Drilling vs. Nordic Semiconductor ASA | NorAm Drilling vs. X FAB Silicon Foundries | NorAm Drilling vs. Semiconductor Manufacturing International | NorAm Drilling vs. NXP Semiconductors NV |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |