Correlation Between ABG Sundal and MPC Energy
Can any of the company-specific risk be diversified away by investing in both ABG Sundal and MPC Energy 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 ABG Sundal and MPC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABG Sundal Collier and MPC Energy Solutions, you can compare the effects of market volatilities on ABG Sundal and MPC Energy 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 ABG Sundal with a short position of MPC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABG Sundal and MPC Energy.
Diversification Opportunities for ABG Sundal and MPC Energy
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ABG and MPC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ABG Sundal Collier and MPC Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Energy Solutions and ABG Sundal 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 ABG Sundal Collier are associated (or correlated) with MPC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Energy Solutions has no effect on the direction of ABG Sundal i.e., ABG Sundal and MPC Energy go up and down completely randomly.
Pair Corralation between ABG Sundal and MPC Energy
Assuming the 90 days trading horizon ABG Sundal is expected to generate 2.58 times less return on investment than MPC Energy. But when comparing it to its historical volatility, ABG Sundal Collier is 5.1 times less risky than MPC Energy. It trades about 0.22 of its potential returns per unit of risk. MPC Energy Solutions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 954.00 in MPC Energy Solutions on September 1, 2025 and sell it today you would earn a total of 361.00 from holding MPC Energy Solutions or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABG Sundal Collier vs. MPC Energy Solutions
Performance |
| Timeline |
| ABG Sundal Collier |
| MPC Energy Solutions |
ABG Sundal and MPC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABG Sundal and MPC Energy
The main advantage of trading using opposite ABG Sundal and MPC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABG Sundal position performs unexpectedly, MPC Energy 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 MPC Energy will offset losses from the drop in MPC Energy's long position.| ABG Sundal vs. SoftwareOne Holding | ABG Sundal vs. Lery Seafood Group | ABG Sundal vs. Nidaros Sparebank | ABG Sundal vs. Jaeren Sparebank |
| MPC Energy vs. Napatech AS | MPC Energy vs. Goodtech | MPC Energy vs. Odfjell Drilling | MPC Energy vs. Shelf Drilling |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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