Correlation Between AutoStore Holdings and Var Energi

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

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

Diversification Opportunities for AutoStore Holdings and Var Energi

0.05

Correlation Coefficient

AutoStore Holdings  Var Energi

Significant diversification

The 3 months correlation between AutoStore and Var is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Var Energi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Var Energi 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 Var Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Var Energi ASA has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Var Energi go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Var Energi

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 2.77 times less return on investment than Var Energi. In addition to that, AutoStore Holdings is 3.15 times more volatile than Var Energi ASA. It trades about 0.02 of its total potential returns per unit of risk. Var Energi ASA is currently generating about 0.21 per unit of volatility. If you would invest  2,783  in Var Energi ASA on April 22, 2025 and sell it today you would earn a total of  637.00  from holding Var Energi ASA or generate 22.89% 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.  Var Energi 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.

Var Energi ASA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Var Energi ASA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Var Energi disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AutoStore Holdings and Var Energi

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

The idea behind AutoStore Holdings and Var Energi 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.