Correlation Between FFSB and Norwegian Block
Can any of the company-specific risk be diversified away by investing in both FFSB and Norwegian Block 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 FFSB and Norwegian Block into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FFSB and Norwegian Block Exchange, you can compare the effects of market volatilities on FFSB and Norwegian Block 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 FFSB with a short position of Norwegian Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of FFSB and Norwegian Block.
Diversification Opportunities for FFSB and Norwegian Block
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FFSB and Norwegian is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding FFSB and Norwegian Block Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norwegian Block Exchange and FFSB 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 FFSB are associated (or correlated) with Norwegian Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norwegian Block Exchange has no effect on the direction of FFSB i.e., FFSB and Norwegian Block go up and down completely randomly.
Pair Corralation between FFSB and Norwegian Block
Assuming the 90 days trading horizon FFSB is expected to generate 5.75 times less return on investment than Norwegian Block. But when comparing it to its historical volatility, FFSB is 4.45 times less risky than Norwegian Block. It trades about 0.01 of its potential returns per unit of risk. Norwegian Block Exchange is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 51.00 in Norwegian Block Exchange on August 20, 2025 and sell it today you would lose (2.00) from holding Norwegian Block Exchange or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
FFSB vs. Norwegian Block Exchange
Performance |
| Timeline |
| FFSB |
| Norwegian Block Exchange |
FFSB and Norwegian Block Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FFSB and Norwegian Block
The main advantage of trading using opposite FFSB and Norwegian Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FFSB position performs unexpectedly, Norwegian Block 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 Block will offset losses from the drop in Norwegian Block's long position.| FFSB vs. Aasen Sparebank | FFSB vs. Sogn Sparebank | FFSB vs. Hermana Holding ASA | FFSB vs. Holand og Setskog |
| Norwegian Block vs. Holand og Setskog | Norwegian Block vs. Sogn Sparebank | Norwegian Block vs. Hermana Holding ASA | Norwegian Block vs. FFSB |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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