Correlation Between Handelsbanken Emerging and Nordea 1
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By analyzing existing cross correlation between Handelsbanken Emerging Markets and Nordea 1 , you can compare the effects of market volatilities on Handelsbanken Emerging and Nordea 1 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 Handelsbanken Emerging with a short position of Nordea 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handelsbanken Emerging and Nordea 1.
Diversification Opportunities for Handelsbanken Emerging and Nordea 1
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Handelsbanken and Nordea is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Handelsbanken Emerging Markets and Nordea 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea 1 and Handelsbanken Emerging 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 Handelsbanken Emerging Markets are associated (or correlated) with Nordea 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea 1 has no effect on the direction of Handelsbanken Emerging i.e., Handelsbanken Emerging and Nordea 1 go up and down completely randomly.
Pair Corralation between Handelsbanken Emerging and Nordea 1
Assuming the 90 days trading horizon Handelsbanken Emerging Markets is expected to generate 0.91 times more return on investment than Nordea 1. However, Handelsbanken Emerging Markets is 1.1 times less risky than Nordea 1. It trades about 0.16 of its potential returns per unit of risk. Nordea 1 is currently generating about 0.05 per unit of risk. If you would invest 22,555 in Handelsbanken Emerging Markets on November 28, 2024 and sell it today you would earn a total of 926.00 from holding Handelsbanken Emerging Markets or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handelsbanken Emerging Markets vs. Nordea 1
Performance |
| Timeline |
| Handelsbanken Emerging |
| Nordea 1 |
Handelsbanken Emerging and Nordea 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handelsbanken Emerging and Nordea 1
The main advantage of trading using opposite Handelsbanken Emerging and Nordea 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handelsbanken Emerging position performs unexpectedly, Nordea 1 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 Nordea 1 will offset losses from the drop in Nordea 1's long position.| Handelsbanken Emerging vs. KLP AksjeNorge Indeks | Handelsbanken Emerging vs. Storebrand Global Solutions | Handelsbanken Emerging vs. Nordea 1 | Handelsbanken Emerging vs. Franklin Floating Rate |
| Nordea 1 vs. Franklin Floating Rate | Nordea 1 vs. Franklin Floating Rate | Nordea 1 vs. Franklin Floating Rate | Nordea 1 vs. KLP Aksje Fremvoksende |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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