Correlation Between Multiconsult and Nel ASA
Can any of the company-specific risk be diversified away by investing in both Multiconsult and Nel 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 Multiconsult and Nel ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multiconsult AS and Nel ASA, you can compare the effects of market volatilities on Multiconsult and Nel 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 Multiconsult with a short position of Nel ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiconsult and Nel ASA.
Diversification Opportunities for Multiconsult and Nel ASA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multiconsult and Nel is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Multiconsult AS and Nel ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nel ASA and Multiconsult 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 Multiconsult AS are associated (or correlated) with Nel ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nel ASA has no effect on the direction of Multiconsult i.e., Multiconsult and Nel ASA go up and down completely randomly.
Pair Corralation between Multiconsult and Nel ASA
Assuming the 90 days trading horizon Multiconsult AS is expected to generate 0.33 times more return on investment than Nel ASA. However, Multiconsult AS is 2.99 times less risky than Nel ASA. It trades about 0.02 of its potential returns per unit of risk. Nel ASA is currently generating about 0.0 per unit of risk. If you would invest 17,350 in Multiconsult AS on October 6, 2025 and sell it today you would earn a total of 200.00 from holding Multiconsult AS or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multiconsult AS vs. Nel ASA
Performance |
| Timeline |
| Multiconsult AS |
| Nel ASA |
Multiconsult and Nel ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiconsult and Nel ASA
The main advantage of trading using opposite Multiconsult and Nel ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiconsult position performs unexpectedly, Nel 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 Nel ASA will offset losses from the drop in Nel ASA's long position.| Multiconsult vs. Klaveness Combination Carriers | Multiconsult vs. Endur ASA | Multiconsult vs. Nel ASA | Multiconsult vs. Sentia Asa |
| Nel ASA vs. Multiconsult AS | Nel ASA vs. Klaveness Combination Carriers | Nel ASA vs. Endur ASA | Nel ASA vs. Solstad Offsho |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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