Correlation Between Voss Veksel and Telenor ASA

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

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

Diversification Opportunities for Voss Veksel and Telenor ASA

0.79

Correlation Coefficient

Voss Veksel  Telenor ASA

Poor diversification

The 3 months correlation between Voss and Telenor is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Voss Veksel og and Telenor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telenor ASA and Voss Veksel 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 Voss Veksel og are associated (or correlated) with Telenor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telenor ASA has no effect on the direction of Voss Veksel i.e., Voss Veksel and Telenor ASA go up and down completely randomly.

Pair Corralation between Voss Veksel and Telenor ASA

Assuming the 90 days trading horizon Voss Veksel og is expected to generate 1.46 times more return on investment than Telenor ASA. However, Voss Veksel is 1.46 times more volatile than Telenor ASA. It trades about 0.16 of its potential returns per unit of risk. Telenor ASA is currently generating about 0.21 per unit of risk. If you would invest  34,368  in Voss Veksel og on April 25, 2025 and sell it today you would earn a total of  4,432  from holding Voss Veksel og or generate 12.9% return on investment over 90 days.

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

Voss Veksel og  vs.  Telenor ASA

Voss Veksel og

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voss Veksel og are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Voss Veksel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Telenor ASA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Telenor ASA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Telenor ASA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Voss Veksel and Telenor ASA

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

The idea behind Voss Veksel og and Telenor 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.