Correlation Between DNB ASA and Otis Gold
Can any of the company-specific risk be diversified away by investing in both DNB ASA and Otis Gold 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 DNB ASA and Otis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DNB ASA and Otis Gold Corp, you can compare the effects of market volatilities on DNB ASA and Otis Gold 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 DNB ASA with a short position of Otis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB ASA and Otis Gold.
Diversification Opportunities for DNB ASA and Otis Gold
Pay attention - limited upside
The 3 months correlation between DNB and Otis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DNB ASA and Otis Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otis Gold Corp and DNB 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 DNB ASA are associated (or correlated) with Otis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otis Gold Corp has no effect on the direction of DNB ASA i.e., DNB ASA and Otis Gold go up and down completely randomly.
Pair Corralation between DNB ASA and Otis Gold
If you would invest (100.00) in Otis Gold Corp on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Otis Gold Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DNB ASA vs. Otis Gold Corp
Performance |
| Timeline |
| DNB ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Otis Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DNB ASA and Otis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB ASA and Otis Gold
The main advantage of trading using opposite DNB ASA and Otis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB ASA position performs unexpectedly, Otis Gold 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 Otis Gold will offset losses from the drop in Otis Gold's long position.| DNB ASA vs. Nabors Industries | DNB ASA vs. Pinterest | DNB ASA vs. Digi International | DNB ASA vs. Orbit Garant Drilling |
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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