Correlation Between Vow ASA and DNB NOR
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By analyzing existing cross correlation between Vow ASA and DNB NOR KAPFORV, you can compare the effects of market volatilities on Vow ASA and DNB NOR 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 Vow ASA with a short position of DNB NOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and DNB NOR.
Diversification Opportunities for Vow ASA and DNB NOR
Significant diversification
The 3 months correlation between Vow and DNB is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and DNB NOR KAPFORV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB NOR KAPFORV and Vow ASA 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 Vow ASA are associated (or correlated) with DNB NOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB NOR KAPFORV has no effect on the direction of Vow ASA i.e., Vow ASA and DNB NOR go up and down completely randomly.
Pair Corralation between Vow ASA and DNB NOR
Assuming the 90 days trading horizon Vow ASA is expected to under-perform the DNB NOR. In addition to that, Vow ASA is 6.54 times more volatile than DNB NOR KAPFORV. It trades about -0.16 of its total potential returns per unit of risk. DNB NOR KAPFORV is currently generating about -0.2 per unit of volatility. If you would invest 109,287 in DNB NOR KAPFORV on October 23, 2024 and sell it today you would lose (1,826) from holding DNB NOR KAPFORV or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow ASA vs. DNB NOR KAPFORV
Performance |
| Timeline |
| Vow ASA |
| DNB NOR KAPFORV |
Vow ASA and DNB NOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and DNB NOR
The main advantage of trading using opposite Vow ASA and DNB NOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, DNB NOR 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 DNB NOR will offset losses from the drop in DNB NOR's long position.| Vow ASA vs. Hexagon Composites ASA | Vow ASA vs. Vow Green Metals | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Aker Carbon Capture |
| DNB NOR vs. Elkem ASA | DNB NOR vs. Integrated Wind Solutions | DNB NOR vs. Vow ASA | DNB NOR vs. North Energy 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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