Correlation Between Vow ASA and Bergen Carbon

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

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

Diversification Opportunities for Vow ASA and Bergen Carbon

0.0

Correlation Coefficient

Vow ASA  Bergen Carbon

Pay attention - limited upside

The 3 months correlation between Vow and Bergen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Bergen Carbon Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergen Carbon Solutions and Vow 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 Vow ASA are associated (or correlated) with Bergen Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergen Carbon Solutions has no effect on the direction of Vow ASA i.e., Vow ASA and Bergen Carbon go up and down completely randomly.

Pair Corralation between Vow ASA and Bergen Carbon

If you would invest  134.00  in Vow ASA on April 24, 2025 and sell it today you would earn a total of  42.00  from holding Vow ASA or generate 31.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vow ASA  vs.  Bergen Carbon Solutions

Vow ASA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vow ASA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Vow ASA disclosed solid returns over the last few months and may actually be approaching a breakup point.

Bergen Carbon Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bergen Carbon Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Bergen Carbon is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Vow ASA and Bergen Carbon

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

The idea behind Vow ASA and Bergen Carbon Solutions 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.