Correlation Between Odfjell Technology and SpareBank
Can any of the company-specific risk be diversified away by investing in both Odfjell Technology and 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 Odfjell Technology and SpareBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odfjell Technology and SpareBank 1 stlandet, you can compare the effects of market volatilities on Odfjell Technology and 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 Odfjell Technology with a short position of SpareBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odfjell Technology and SpareBank.
Diversification Opportunities for Odfjell Technology and SpareBank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Odfjell and SpareBank is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Odfjell Technology and SpareBank 1 stlandet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpareBank 1 stlandet and Odfjell Technology 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 Technology are associated (or correlated) with SpareBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpareBank 1 stlandet has no effect on the direction of Odfjell Technology i.e., Odfjell Technology and SpareBank go up and down completely randomly.
Pair Corralation between Odfjell Technology and SpareBank
Assuming the 90 days trading horizon Odfjell Technology is expected to under-perform the SpareBank. In addition to that, Odfjell Technology is 1.5 times more volatile than SpareBank 1 stlandet. It trades about -0.03 of its total potential returns per unit of risk. SpareBank 1 stlandet is currently generating about 0.02 per unit of volatility. If you would invest 18,506 in SpareBank 1 stlandet on September 4, 2025 and sell it today you would earn a total of 194.00 from holding SpareBank 1 stlandet or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odfjell Technology vs. SpareBank 1 stlandet
Performance |
| Timeline |
| Odfjell Technology |
| SpareBank 1 stlandet |
Odfjell Technology and SpareBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odfjell Technology and SpareBank
The main advantage of trading using opposite Odfjell Technology and SpareBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odfjell Technology position performs unexpectedly, 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 SpareBank will offset losses from the drop in SpareBank's long position.| Odfjell Technology vs. Proximar Seafood AS | Odfjell Technology vs. NorAm Drilling AS | Odfjell Technology vs. Nordic Mining ASA | Odfjell Technology vs. SoftwareOne Holding |
| SpareBank vs. Nordhealth AS | SpareBank vs. Morrow Bank ASA | SpareBank vs. Thor Medical ASA | SpareBank 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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