Correlation Between Norsk Hydro and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both Norsk Hydro and TSOGO SUN 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 Norsk Hydro and TSOGO SUN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Norsk Hydro ASA and TSOGO SUN GAMING, you can compare the effects of market volatilities on Norsk Hydro and TSOGO SUN 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 Norsk Hydro with a short position of TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norsk Hydro and TSOGO SUN.
Diversification Opportunities for Norsk Hydro and TSOGO SUN
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Norsk and TSOGO is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Norsk Hydro ASA and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING and Norsk Hydro 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 Norsk Hydro ASA are associated (or correlated) with TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of Norsk Hydro i.e., Norsk Hydro and TSOGO SUN go up and down completely randomly.
Pair Corralation between Norsk Hydro and TSOGO SUN
Assuming the 90 days trading horizon Norsk Hydro ASA is expected to generate 0.8 times more return on investment than TSOGO SUN. However, Norsk Hydro ASA is 1.25 times less risky than TSOGO SUN. It trades about 0.08 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about -0.14 per unit of risk. If you would invest 528.00 in Norsk Hydro ASA on December 28, 2024 and sell it today you would earn a total of 52.00 from holding Norsk Hydro ASA or generate 9.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Norsk Hydro ASA vs. TSOGO SUN GAMING
Performance |
Timeline |
Norsk Hydro ASA |
TSOGO SUN GAMING |
Norsk Hydro and TSOGO SUN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Norsk Hydro and TSOGO SUN
The main advantage of trading using opposite Norsk Hydro and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norsk Hydro position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.Norsk Hydro vs. QLEANAIR AB SK 50 | Norsk Hydro vs. GRENKELEASING Dusseldorf | Norsk Hydro vs. AIR LIQUIDE ADR | Norsk Hydro vs. Enter Air SA |
TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. Galaxy Entertainment Group | TSOGO SUN vs. Sands China | TSOGO SUN vs. MGM Resorts International |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |