Correlation Between Okea ASA and Zenith Energy
Can any of the company-specific risk be diversified away by investing in both Okea ASA and Zenith Energy 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 Okea ASA and Zenith Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okea ASA and Zenith Energy, you can compare the effects of market volatilities on Okea ASA and Zenith Energy 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 Okea ASA with a short position of Zenith Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okea ASA and Zenith Energy.
Diversification Opportunities for Okea ASA and Zenith Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okea and Zenith is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Okea ASA and Zenith Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zenith Energy and Okea ASA 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 Okea ASA are associated (or correlated) with Zenith Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zenith Energy has no effect on the direction of Okea ASA i.e., Okea ASA and Zenith Energy go up and down completely randomly.
Pair Corralation between Okea ASA and Zenith Energy
Assuming the 90 days trading horizon Okea ASA is expected to generate 3.14 times less return on investment than Zenith Energy. But when comparing it to its historical volatility, Okea ASA is 2.41 times less risky than Zenith Energy. It trades about 0.05 of its potential returns per unit of risk. Zenith Energy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Zenith Energy on August 26, 2025 and sell it today you would earn a total of 6.00 from holding Zenith Energy or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okea ASA vs. Zenith Energy
Performance |
| Timeline |
| Okea ASA |
| Zenith Energy |
Okea ASA and Zenith Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okea ASA and Zenith Energy
The main advantage of trading using opposite Okea ASA and Zenith Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okea ASA position performs unexpectedly, Zenith Energy 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 Zenith Energy will offset losses from the drop in Zenith Energy's long position.| Okea ASA vs. Polaris Media | Okea ASA vs. Helgeland Sparebank | Okea ASA vs. Nordic Mining ASA | Okea ASA vs. Nordhealth AS |
| Zenith Energy vs. 5Th Planet Games | Zenith Energy vs. Huddlestock Fintech As | Zenith Energy vs. Morrow Bank ASA | Zenith Energy vs. Sparebanken Ost |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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