Correlation Between 24SEVENOFFICE GROUP and DNB BANK

Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP and DNB BANK 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 24SEVENOFFICE GROUP and DNB BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and DNB BANK ASA, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP and DNB BANK 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 24SEVENOFFICE GROUP with a short position of DNB BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and DNB BANK.

Diversification Opportunities for 24SEVENOFFICE GROUP and DNB BANK

-0.03

Correlation Coefficient

24SEVENOFFICE GROUP  DNB BANK

Good diversification

The 3 months correlation between 24SEVENOFFICE and DNB is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and DNB BANK ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB BANK ASA and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB are associated (or correlated) with DNB BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB BANK ASA has no effect on the direction of 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and DNB BANK go up and down completely randomly.

Pair Corralation between 24SEVENOFFICE GROUP and DNB BANK

If you would invest  83.00  in 24SEVENOFFICE GROUP AB on October 10, 2024 and sell it today you would earn a total of  124.00  from holding 24SEVENOFFICE GROUP AB or generate 149.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

24SEVENOFFICE GROUP AB  vs.  DNB BANK ASA

24SEVENOFFICE GROUP

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 24SEVENOFFICE GROUP AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, 24SEVENOFFICE GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

DNB BANK ASA

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days DNB BANK ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, DNB BANK may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with 24SEVENOFFICE GROUP and DNB BANK

The main advantage of trading using opposite 24SEVENOFFICE GROUP and DNB BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP position performs unexpectedly, DNB BANK 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 BANK will offset losses from the drop in DNB BANK's long position.

The idea behind 24SEVENOFFICE GROUP AB and DNB BANK ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.