Correlation Between Dno ASA and CNX Resources
Can any of the company-specific risk be diversified away by investing in both Dno ASA and CNX Resources 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 Dno ASA and CNX Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dno ASA and CNX Resources Corp, you can compare the effects of market volatilities on Dno ASA and CNX Resources 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 Dno ASA with a short position of CNX Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dno ASA and CNX Resources.
Diversification Opportunities for Dno ASA and CNX Resources
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dno and CNX is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dno ASA and CNX Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNX Resources Corp and Dno 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 Dno ASA are associated (or correlated) with CNX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNX Resources Corp has no effect on the direction of Dno ASA i.e., Dno ASA and CNX Resources go up and down completely randomly.
Pair Corralation between Dno ASA and CNX Resources
Assuming the 90 days horizon Dno ASA is expected to generate 1.15 times more return on investment than CNX Resources. However, Dno ASA is 1.15 times more volatile than CNX Resources Corp. It trades about 0.18 of its potential returns per unit of risk. CNX Resources Corp is currently generating about -0.22 per unit of risk. If you would invest 88.00 in Dno ASA on December 2, 2024 and sell it today you would earn a total of 21.00 from holding Dno ASA or generate 23.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dno ASA vs. CNX Resources Corp
Performance |
Timeline |
Dno ASA |
CNX Resources Corp |
Dno ASA and CNX Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dno ASA and CNX Resources
The main advantage of trading using opposite Dno ASA and CNX Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dno ASA position performs unexpectedly, CNX Resources 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 CNX Resources will offset losses from the drop in CNX Resources' long position.Dno ASA vs. PetroShale | Dno ASA vs. Horizon Oil Limited | Dno ASA vs. Enwell Energy plc | Dno ASA vs. Tullow Oil plc |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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