Correlation Between Garb Oil and Tomra Systems

Can any of the company-specific risk be diversified away by investing in both Garb Oil and Tomra Systems 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 Garb Oil and Tomra Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Garb Oil Pwr and Tomra Systems ASA, you can compare the effects of market volatilities on Garb Oil and Tomra Systems 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 Garb Oil with a short position of Tomra Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garb Oil and Tomra Systems.

Diversification Opportunities for Garb Oil and Tomra Systems

0.0

Correlation Coefficient

Garb Oil  Tomra Systems

Pay attention - limited upside

The 3 months correlation between Garb and Tomra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Garb Oil Pwr and Tomra Systems ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tomra Systems ASA and Garb Oil 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 Garb Oil Pwr are associated (or correlated) with Tomra Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tomra Systems ASA has no effect on the direction of Garb Oil i.e., Garb Oil and Tomra Systems go up and down completely randomly.

Pair Corralation between Garb Oil and Tomra Systems

If you would invest  0.00  in Garb Oil Pwr on September 21, 2024 and sell it today you would earn a total of  0.00  from holding Garb Oil Pwr or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Garb Oil Pwr  vs.  Tomra Systems ASA

Garb Oil Pwr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Garb Oil Pwr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Garb Oil is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Tomra Systems ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tomra Systems ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Garb Oil and Tomra Systems

The main advantage of trading using opposite Garb Oil and Tomra Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garb Oil position performs unexpectedly, Tomra Systems 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 Tomra Systems will offset losses from the drop in Tomra Systems' long position.

The idea behind Garb Oil Pwr and Tomra Systems 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.