Correlation Between Nordic Mining and Sea1 Offshore
Can any of the company-specific risk be diversified away by investing in both Nordic Mining and Sea1 Offshore 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 Sea1 Offshore 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 Sea1 Offshore, you can compare the effects of market volatilities on Nordic Mining and Sea1 Offshore 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 Sea1 Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Mining and Sea1 Offshore.
Diversification Opportunities for Nordic Mining and Sea1 Offshore
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordic and Sea1 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Mining ASA and Sea1 Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea1 Offshore 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 Sea1 Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea1 Offshore has no effect on the direction of Nordic Mining i.e., Nordic Mining and Sea1 Offshore go up and down completely randomly.
Pair Corralation between Nordic Mining and Sea1 Offshore
Assuming the 90 days trading horizon Nordic Mining ASA is expected to under-perform the Sea1 Offshore. In addition to that, Nordic Mining is 1.22 times more volatile than Sea1 Offshore. It trades about -0.14 of its total potential returns per unit of risk. Sea1 Offshore is currently generating about 0.0 per unit of volatility. If you would invest 2,540 in Sea1 Offshore on June 11, 2025 and sell it today you would lose (40.00) from holding Sea1 Offshore or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Mining ASA vs. Sea1 Offshore
Performance |
| Timeline |
| Nordic Mining ASA |
| Sea1 Offshore |
Nordic Mining and Sea1 Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Mining and Sea1 Offshore
The main advantage of trading using opposite Nordic Mining and Sea1 Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Mining position performs unexpectedly, Sea1 Offshore 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 Sea1 Offshore will offset losses from the drop in Sea1 Offshore's long position.| Nordic Mining vs. Goodtech | Nordic Mining vs. Aasen Sparebank | Nordic Mining vs. Melhus Sparebank | Nordic Mining vs. Odfjell Technology |
| Sea1 Offshore vs. Nordic Semiconductor ASA | Sea1 Offshore vs. SoftwareOne Holding | Sea1 Offshore vs. Aasen Sparebank | Sea1 Offshore vs. Nordic Mining ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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