Correlation Between Bell Food and Norwegian Air
Can any of the company-specific risk be diversified away by investing in both Bell Food and Norwegian Air 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 Bell Food and Norwegian Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Food Group and Norwegian Air Shuttle, you can compare the effects of market volatilities on Bell Food and Norwegian Air 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 Bell Food with a short position of Norwegian Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Food and Norwegian Air.
Diversification Opportunities for Bell Food and Norwegian Air
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bell and Norwegian is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bell Food Group and Norwegian Air Shuttle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norwegian Air Shuttle and Bell Food 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 Bell Food Group are associated (or correlated) with Norwegian Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norwegian Air Shuttle has no effect on the direction of Bell Food i.e., Bell Food and Norwegian Air go up and down completely randomly.
Pair Corralation between Bell Food and Norwegian Air
Assuming the 90 days trading horizon Bell Food Group is expected to under-perform the Norwegian Air. But the stock apears to be less risky and, when comparing its historical volatility, Bell Food Group is 1.95 times less risky than Norwegian Air. The stock trades about -0.2 of its potential returns per unit of risk. The Norwegian Air Shuttle is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,614 in Norwegian Air Shuttle on September 10, 2025 and sell it today you would earn a total of 102.00 from holding Norwegian Air Shuttle or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Food Group vs. Norwegian Air Shuttle
Performance |
| Timeline |
| Bell Food Group |
| Norwegian Air Shuttle |
Bell Food and Norwegian Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Food and Norwegian Air
The main advantage of trading using opposite Bell Food and Norwegian Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Food position performs unexpectedly, Norwegian Air 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 Norwegian Air will offset losses from the drop in Norwegian Air's long position.| Bell Food vs. Abeona Therapeutics | Bell Food vs. Roadside Real Estate | Bell Food vs. Power Metal Resources | Bell Food vs. Tamburi Investment Partners |
| Norwegian Air vs. Abeona Therapeutics | Norwegian Air vs. Roadside Real Estate | Norwegian Air vs. Power Metal Resources | Norwegian Air vs. Tamburi Investment Partners |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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