Correlation Between Odfjell SE and Next Biometrics
Can any of the company-specific risk be diversified away by investing in both Odfjell SE and Next Biometrics 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 Odfjell SE and Next Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odfjell SE and Next Biometrics Group, you can compare the effects of market volatilities on Odfjell SE and Next Biometrics 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 Odfjell SE with a short position of Next Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odfjell SE and Next Biometrics.
Diversification Opportunities for Odfjell SE and Next Biometrics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Odfjell and Next is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Odfjell SE and Next Biometrics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Biometrics Group and Odfjell SE 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 Odfjell SE are associated (or correlated) with Next Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Biometrics Group has no effect on the direction of Odfjell SE i.e., Odfjell SE and Next Biometrics go up and down completely randomly.
Pair Corralation between Odfjell SE and Next Biometrics
Assuming the 90 days trading horizon Odfjell SE is expected to generate 0.34 times more return on investment than Next Biometrics. However, Odfjell SE is 2.94 times less risky than Next Biometrics. It trades about 0.03 of its potential returns per unit of risk. Next Biometrics Group is currently generating about -0.23 per unit of risk. If you would invest 12,600 in Odfjell SE on September 13, 2025 and sell it today you would earn a total of 300.00 from holding Odfjell SE or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odfjell SE vs. Next Biometrics Group
Performance |
| Timeline |
| Odfjell SE |
| Next Biometrics Group |
Odfjell SE and Next Biometrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odfjell SE and Next Biometrics
The main advantage of trading using opposite Odfjell SE and Next Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odfjell SE position performs unexpectedly, Next Biometrics 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 Next Biometrics will offset losses from the drop in Next Biometrics' long position.| Odfjell SE vs. MPC Container Ships | Odfjell SE vs. Bonheur | Odfjell SE vs. Okeanis Eco Tankers | Odfjell SE vs. Stolt Nielsen Limited |
| Next Biometrics vs. Arribatec Solutions ASA | Next Biometrics vs. Techstep ASA | Next Biometrics vs. Cyviz AS | Next Biometrics vs. Huddly AS |
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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