Correlation Between Hermana Holding and Norwegian Block
Can any of the company-specific risk be diversified away by investing in both Hermana Holding 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 Hermana Holding and Norwegian Block into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hermana Holding ASA and Norwegian Block Exchange, you can compare the effects of market volatilities on Hermana Holding 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 Hermana Holding with a short position of Norwegian Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hermana Holding and Norwegian Block.
Diversification Opportunities for Hermana Holding and Norwegian Block
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hermana and Norwegian is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hermana Holding ASA 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 Hermana Holding 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 Hermana Holding ASA 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 Hermana Holding i.e., Hermana Holding and Norwegian Block go up and down completely randomly.
Pair Corralation between Hermana Holding and Norwegian Block
Assuming the 90 days trading horizon Hermana Holding ASA is expected to generate 0.37 times more return on investment than Norwegian Block. However, Hermana Holding ASA is 2.68 times less risky than Norwegian Block. It trades about 0.15 of its potential returns per unit of risk. Norwegian Block Exchange is currently generating about 0.02 per unit of risk. If you would invest 1,260 in Hermana Holding ASA on August 20, 2025 and sell it today you would earn a total of 260.00 from holding Hermana Holding ASA or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Hermana Holding ASA vs. Norwegian Block Exchange
Performance |
| Timeline |
| Hermana Holding ASA |
| Norwegian Block Exchange |
Hermana Holding and Norwegian Block Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hermana Holding and Norwegian Block
The main advantage of trading using opposite Hermana Holding and Norwegian Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hermana Holding 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.| Hermana Holding vs. Equinor ASA | Hermana Holding vs. DnB ASA | Hermana Holding vs. Aker BP ASA | Hermana Holding vs. Telenor ASA |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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