Correlation Between Odfjell Drilling and Hunter Group
Can any of the company-specific risk be diversified away by investing in both Odfjell Drilling and Hunter Group 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 Drilling and Hunter Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odfjell Drilling and Hunter Group ASA, you can compare the effects of market volatilities on Odfjell Drilling and Hunter Group 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 Drilling with a short position of Hunter Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odfjell Drilling and Hunter Group.
Diversification Opportunities for Odfjell Drilling and Hunter Group
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Odfjell and Hunter is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Odfjell Drilling and Hunter Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Group ASA and Odfjell Drilling 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 Drilling are associated (or correlated) with Hunter Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Group ASA has no effect on the direction of Odfjell Drilling i.e., Odfjell Drilling and Hunter Group go up and down completely randomly.
Pair Corralation between Odfjell Drilling and Hunter Group
Assuming the 90 days trading horizon Odfjell Drilling is expected to generate 4.03 times less return on investment than Hunter Group. But when comparing it to its historical volatility, Odfjell Drilling is 3.21 times less risky than Hunter Group. It trades about 0.14 of its potential returns per unit of risk. Hunter Group ASA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Hunter Group ASA on October 7, 2025 and sell it today you would earn a total of 61.00 from holding Hunter Group ASA or generate 58.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odfjell Drilling vs. Hunter Group ASA
Performance |
| Timeline |
| Odfjell Drilling |
| Hunter Group ASA |
Odfjell Drilling and Hunter Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odfjell Drilling and Hunter Group
The main advantage of trading using opposite Odfjell Drilling and Hunter Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odfjell Drilling position performs unexpectedly, Hunter Group 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 Hunter Group will offset losses from the drop in Hunter Group's long position.| Odfjell Drilling vs. Petrolia SE | Odfjell Drilling vs. Hunter Group ASA | Odfjell Drilling vs. Electromagnetic Geoservices ASA | Odfjell Drilling vs. Zenith Energy |
| Hunter Group vs. Electromagnetic Geoservices ASA | Hunter Group vs. Zenith Energy | Hunter Group vs. Dolphin Drilling AS | Hunter Group vs. Petrolia SE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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