Correlation Between Nordea Bank and Bet At
Can any of the company-specific risk be diversified away by investing in both Nordea Bank and Bet At 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 Nordea Bank and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea Bank Abp and bet at home AG, you can compare the effects of market volatilities on Nordea Bank and Bet At 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 Nordea Bank with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Bet At.
Diversification Opportunities for Nordea Bank and Bet At
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and Bet is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and Nordea Bank 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 Nordea Bank Abp are associated (or correlated) with Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Nordea Bank i.e., Nordea Bank and Bet At go up and down completely randomly.
Pair Corralation between Nordea Bank and Bet At
Assuming the 90 days trading horizon Nordea Bank is expected to generate 1.35 times less return on investment than Bet At. But when comparing it to its historical volatility, Nordea Bank Abp is 2.22 times less risky than Bet At. It trades about 0.18 of its potential returns per unit of risk. bet at home AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 259.00 in bet at home AG on October 30, 2024 and sell it today you would earn a total of 25.00 from holding bet at home AG or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. bet at home AG
Performance |
| Timeline |
| Nordea Bank Abp |
| bet at home |
Nordea Bank and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Bet At
The main advantage of trading using opposite Nordea Bank and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Nordea Bank vs. First Class Metals | Nordea Bank vs. Sealed Air Corp | Nordea Bank vs. Delta Air Lines | Nordea Bank vs. Aptitude Software Group |
| Bet At vs. Berkshire Hathaway | Bet At vs. Samsung Electronics Co | Bet At vs. Samsung Electronics Co | Bet At vs. Chocoladefabriken Lindt Spruengli |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |