Correlation Between Arcticzymes Technologies and Elkem ASA
Can any of the company-specific risk be diversified away by investing in both Arcticzymes Technologies and Elkem ASA 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 Arcticzymes Technologies and Elkem ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcticzymes Technologies ASA and Elkem ASA, you can compare the effects of market volatilities on Arcticzymes Technologies and Elkem ASA 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 Arcticzymes Technologies with a short position of Elkem ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcticzymes Technologies and Elkem ASA.
Diversification Opportunities for Arcticzymes Technologies and Elkem ASA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arcticzymes and Elkem is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arcticzymes Technologies ASA and Elkem ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkem ASA and Arcticzymes Technologies 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 Arcticzymes Technologies ASA are associated (or correlated) with Elkem ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkem ASA has no effect on the direction of Arcticzymes Technologies i.e., Arcticzymes Technologies and Elkem ASA go up and down completely randomly.
Pair Corralation between Arcticzymes Technologies and Elkem ASA
Assuming the 90 days trading horizon Arcticzymes Technologies ASA is expected to generate 2.16 times more return on investment than Elkem ASA. However, Arcticzymes Technologies is 2.16 times more volatile than Elkem ASA. It trades about 0.19 of its potential returns per unit of risk. Elkem ASA is currently generating about 0.12 per unit of risk. If you would invest 1,630 in Arcticzymes Technologies ASA on June 9, 2025 and sell it today you would earn a total of 1,090 from holding Arcticzymes Technologies ASA or generate 66.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcticzymes Technologies ASA vs. Elkem ASA
Performance |
| Timeline |
| Arcticzymes Technologies |
| Elkem ASA |
Arcticzymes Technologies and Elkem ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcticzymes Technologies and Elkem ASA
The main advantage of trading using opposite Arcticzymes Technologies and Elkem ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcticzymes Technologies position performs unexpectedly, Elkem ASA 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 Elkem ASA will offset losses from the drop in Elkem ASA's long position.| Arcticzymes Technologies vs. Genovis AB | Arcticzymes Technologies vs. Bio Works Technologies AB | Arcticzymes Technologies vs. Ascelia Pharma AB | Arcticzymes Technologies vs. Bergenbio ASA |
| Elkem ASA vs. Storebrand ASA | Elkem ASA vs. Yara International ASA | Elkem ASA vs. Lery Seafood Group | Elkem ASA vs. DnB ASA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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