Correlation Between Morrow Bank and MPC Energy
Can any of the company-specific risk be diversified away by investing in both Morrow Bank 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 Morrow Bank and MPC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morrow Bank ASA and MPC Energy Solutions, you can compare the effects of market volatilities on Morrow Bank 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 Morrow Bank with a short position of MPC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morrow Bank and MPC Energy.
Diversification Opportunities for Morrow Bank and MPC Energy
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Morrow and MPC is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Morrow Bank ASA 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 Morrow Bank 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 Morrow Bank ASA 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 Morrow Bank i.e., Morrow Bank and MPC Energy go up and down completely randomly.
Pair Corralation between Morrow Bank and MPC Energy
Assuming the 90 days trading horizon Morrow Bank ASA is expected to generate 1.18 times more return on investment than MPC Energy. However, Morrow Bank is 1.18 times more volatile than MPC Energy Solutions. It trades about 0.13 of its potential returns per unit of risk. MPC Energy Solutions is currently generating about -0.15 per unit of risk. If you would invest 1,210 in Morrow Bank ASA on July 26, 2025 and sell it today you would earn a total of 195.00 from holding Morrow Bank ASA or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morrow Bank ASA vs. MPC Energy Solutions
Performance |
| Timeline |
| Morrow Bank ASA |
| MPC Energy Solutions |
Morrow Bank and MPC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morrow Bank and MPC Energy
The main advantage of trading using opposite Morrow Bank and MPC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morrow Bank 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.| Morrow Bank vs. ABG Sundal Collier | Morrow Bank vs. Helgeland Sparebank | Morrow Bank vs. Instabank ASA | Morrow Bank vs. Sparebank 1 Nordvest |
| MPC Energy vs. Thor Medical ASA | MPC Energy vs. Nordic Semiconductor ASA | MPC Energy vs. Ventura Offshore Holding | MPC Energy vs. SoftwareOne Holding |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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