Correlation Between Polight ASA and Webstep ASA

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

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

Diversification Opportunities for Polight ASA and Webstep ASA

-0.84

Correlation Coefficient

Polight ASA  Webstep ASA

Pay attention - limited upside

The 3 months correlation between Polight and Webstep is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Polight ASA and Webstep ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webstep ASA and Polight 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 Polight ASA are associated (or correlated) with Webstep ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webstep ASA has no effect on the direction of Polight ASA i.e., Polight ASA and Webstep ASA go up and down completely randomly.

Pair Corralation between Polight ASA and Webstep ASA

Assuming the 90 days trading horizon Polight ASA is expected to under-perform the Webstep ASA. In addition to that, Polight ASA is 2.76 times more volatile than Webstep ASA. It trades about -0.18 of its total potential returns per unit of risk. Webstep ASA is currently generating about 0.06 per unit of volatility. If you would invest  1,750  in Webstep ASA on September 18, 2025 and sell it today you would earn a total of  30.00  from holding Webstep ASA or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Polight ASA  vs.  Webstep ASA

Polight ASA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Polight ASA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Polight ASA disclosed solid returns over the last few months and may actually be approaching a breakup point.

Webstep ASA

Risk-Adjusted Performance

Weakest

Over the last 90 days Webstep ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Polight ASA and Webstep ASA

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

The idea behind Polight ASA and Webstep 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.