Correlation Between Nordic Semiconductor and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Hong Kong 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 Nordic Semiconductor and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Hong Kong Land, you can compare the effects of market volatilities on Nordic Semiconductor and Hong Kong 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 Nordic Semiconductor with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Hong Kong.
Diversification Opportunities for Nordic Semiconductor and Hong Kong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land and Nordic Semiconductor 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 Nordic Semiconductor ASA are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Hong Kong go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Hong Kong
If you would invest 9,974 in Nordic Semiconductor ASA on October 21, 2024 and sell it today you would earn a total of 1,579 from holding Nordic Semiconductor ASA or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Hong Kong Land
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Hong Kong Land |
Nordic Semiconductor and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Hong Kong
The main advantage of trading using opposite Nordic Semiconductor and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Nordic Semiconductor vs. Alaska Air Group | Nordic Semiconductor vs. Vienna Insurance Group | Nordic Semiconductor vs. Sabre Insurance Group | Nordic Semiconductor vs. Ecofin Global Utilities |
| Hong Kong vs. Derwent London PLC | Hong Kong vs. Hammerson PLC | Hong Kong vs. Supermarket Income REIT | Hong Kong vs. Workspace Group PLC |
Check out your portfolio center.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings 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 | |
| Commodity Directory Find actively traded commodities issued by global exchanges |