Pair Correlation Between DNB ASA and Otis Gold

This module allows you to analyze 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. See also your portfolio center. Please also check ongoing floating volatility patterns of DNB ASA and Otis Gold.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DNB ASA  vs   Otis Gold Corp
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, DNB ASA is expected to under-perform the Otis Gold. But the stock apears to be less risky and, when comparing its historical volatility, DNB ASA is 14.62 times less risky than Otis Gold. The stock trades about -0.23 of its potential returns per unit of risk. The Otis Gold Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  22  in Otis Gold Corp on September 22, 2017 and sell it today you would earn a total of  1  from holding Otis Gold Corp or generate 4.55% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DNB ASA and Otis Gold
0.6

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy4.1%
ValuesDaily Returns

Diversification

Poor diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

DNB ASA

  
0 

Risk-Adjusted Performance

Over the last 30 days DNB ASA has generated negative risk-adjusted returns adding no value to investors with long positions.

Otis Gold Corp

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Otis Gold Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.