Correlation Between Var Energi and Axactor SE
Can any of the company-specific risk be diversified away by investing in both Var Energi and Axactor SE 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 Var Energi and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Var Energi ASA and Axactor SE, you can compare the effects of market volatilities on Var Energi and Axactor SE 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 Var Energi with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Var Energi and Axactor SE.
Diversification Opportunities for Var Energi and Axactor SE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Var and Axactor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Var Energi ASA and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Var Energi 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 Var Energi ASA are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Var Energi i.e., Var Energi and Axactor SE go up and down completely randomly.
Pair Corralation between Var Energi and Axactor SE
Assuming the 90 days trading horizon Var Energi ASA is expected to generate 0.54 times more return on investment than Axactor SE. However, Var Energi ASA is 1.87 times less risky than Axactor SE. It trades about 0.18 of its potential returns per unit of risk. Axactor SE is currently generating about -0.34 per unit of risk. If you would invest 3,447 in Var Energi ASA on August 28, 2024 and sell it today you would earn a total of 225.00 from holding Var Energi ASA or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Var Energi ASA vs. Axactor SE
Performance |
| Timeline |
| Var Energi ASA |
| Axactor SE |
Var Energi and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Var Energi and Axactor SE
The main advantage of trading using opposite Var Energi and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Var Energi position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| Var Energi vs. Aker BP ASA | Var Energi vs. Belships | Var Energi vs. MPC Container Ships | Var Energi vs. 2020 Bulkers |
| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |