Correlation Between Europris ASA and Orkla ASA
Can any of the company-specific risk be diversified away by investing in both Europris ASA and Orkla 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 Europris ASA and Orkla ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europris ASA and Orkla ASA, you can compare the effects of market volatilities on Europris ASA and Orkla 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 Europris ASA with a short position of Orkla ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europris ASA and Orkla ASA.
Diversification Opportunities for Europris ASA and Orkla ASA
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Europris and Orkla is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Europris ASA and Orkla ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orkla ASA and Europris ASA 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 Europris ASA are associated (or correlated) with Orkla ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orkla ASA has no effect on the direction of Europris ASA i.e., Europris ASA and Orkla ASA go up and down completely randomly.
Pair Corralation between Europris ASA and Orkla ASA
Assuming the 90 days trading horizon Europris ASA is expected to generate 1.24 times more return on investment than Orkla ASA. However, Europris ASA is 1.24 times more volatile than Orkla ASA. It trades about 0.04 of its potential returns per unit of risk. Orkla ASA is currently generating about -0.03 per unit of risk. If you would invest 9,680 in Europris ASA on July 21, 2025 and sell it today you would earn a total of 260.00 from holding Europris ASA or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europris ASA vs. Orkla ASA
Performance |
| Timeline |
| Europris ASA |
| Orkla ASA |
Europris ASA and Orkla ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europris ASA and Orkla ASA
The main advantage of trading using opposite Europris ASA and Orkla ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europris ASA position performs unexpectedly, Orkla 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 Orkla ASA will offset losses from the drop in Orkla ASA's long position.| Europris ASA vs. Austevoll Seafood ASA | Europris ASA vs. Grieg Seafood ASA | Europris ASA vs. Lery Seafood Group | Europris ASA vs. Aker Biomarine AS |
| Orkla ASA vs. Mowi ASA | Orkla ASA vs. Lery Seafood Group | Orkla ASA vs. SalMar ASA | Orkla ASA vs. Dellia Grp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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