Correlation Between Nordic Mining and Flekkefjord Sparebank
Can any of the company-specific risk be diversified away by investing in both Nordic Mining and Flekkefjord Sparebank 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 Nordic Mining and Flekkefjord Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Mining ASA and Flekkefjord Sparebank, you can compare the effects of market volatilities on Nordic Mining and Flekkefjord Sparebank 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 Nordic Mining with a short position of Flekkefjord Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Mining and Flekkefjord Sparebank.
Diversification Opportunities for Nordic Mining and Flekkefjord Sparebank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nordic and Flekkefjord is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Mining ASA and Flekkefjord Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flekkefjord Sparebank and Nordic Mining 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 Nordic Mining ASA are associated (or correlated) with Flekkefjord Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flekkefjord Sparebank has no effect on the direction of Nordic Mining i.e., Nordic Mining and Flekkefjord Sparebank go up and down completely randomly.
Pair Corralation between Nordic Mining and Flekkefjord Sparebank
Assuming the 90 days trading horizon Nordic Mining ASA is expected to under-perform the Flekkefjord Sparebank. In addition to that, Nordic Mining is 1.99 times more volatile than Flekkefjord Sparebank. It trades about -0.04 of its total potential returns per unit of risk. Flekkefjord Sparebank is currently generating about 0.01 per unit of volatility. If you would invest 12,500 in Flekkefjord Sparebank on September 4, 2025 and sell it today you would earn a total of 0.00 from holding Flekkefjord Sparebank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Mining ASA vs. Flekkefjord Sparebank
Performance |
| Timeline |
| Nordic Mining ASA |
| Flekkefjord Sparebank |
Nordic Mining and Flekkefjord Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Mining and Flekkefjord Sparebank
The main advantage of trading using opposite Nordic Mining and Flekkefjord Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Mining position performs unexpectedly, Flekkefjord Sparebank 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 Flekkefjord Sparebank will offset losses from the drop in Flekkefjord Sparebank's long position.| Nordic Mining vs. Atea ASA | Nordic Mining vs. NorAm Drilling AS | Nordic Mining vs. Hermana Holding ASA | Nordic Mining vs. Nykode Therapeutics ASA |
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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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