Correlation Between NORSK and Dow Jones
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By analyzing existing cross correlation between NORSK HYDRO A and Dow Jones Industrial, you can compare the effects of market volatilities on NORSK and Dow Jones 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 NORSK with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORSK and Dow Jones.
Diversification Opportunities for NORSK and Dow Jones
Very good diversification
The 3 months correlation between NORSK and Dow is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NORSK HYDRO A and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and NORSK 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 NORSK HYDRO A are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of NORSK i.e., NORSK and Dow Jones go up and down completely randomly.
Pair Corralation between NORSK and Dow Jones
If you would invest 3,292,896 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 1,136,755 from holding Dow Jones Industrial or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
NORSK HYDRO A vs. Dow Jones Industrial
Performance |
| Timeline |
NORSK and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NORSK HYDRO A
Pair trading matchups for NORSK
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NORSK and Dow Jones
The main advantage of trading using opposite NORSK and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORSK position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| NORSK vs. Philip Morris International | NORSK vs. CT Real Estate | NORSK vs. Anheuser Busch Inbev | NORSK vs. Constellation Brands Class |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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