Correlation Between AutoStore Holdings and Equinor ASA

Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Equinor ASA 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 AutoStore Holdings and Equinor ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AutoStore Holdings and Equinor ASA, you can compare the effects of market volatilities on AutoStore Holdings and Equinor ASA 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 AutoStore Holdings with a short position of Equinor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Equinor ASA.

Diversification Opportunities for AutoStore Holdings and Equinor ASA

0.16

Correlation Coefficient

AutoStore Holdings  Equinor ASA

Average diversification

The 3 months correlation between AutoStore and Equinor is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Equinor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinor ASA and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Equinor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinor ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Equinor ASA go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Equinor ASA

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 1.46 times less return on investment than Equinor ASA. In addition to that, AutoStore Holdings is 2.96 times more volatile than Equinor ASA. It trades about 0.02 of its total potential returns per unit of risk. Equinor ASA is currently generating about 0.11 per unit of volatility. If you would invest  23,942  in Equinor ASA on April 22, 2025 and sell it today you would earn a total of  2,618  from holding Equinor ASA or generate 10.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AutoStore Holdings  vs.  Equinor ASA

AutoStore Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, AutoStore Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Equinor ASA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Equinor ASA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Equinor ASA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AutoStore Holdings and Equinor ASA

The main advantage of trading using opposite AutoStore Holdings and Equinor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AutoStore Holdings position performs unexpectedly, Equinor ASA 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 Equinor ASA will offset losses from the drop in Equinor ASA's long position.

The idea behind AutoStore Holdings and Equinor ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.