Correlation Between Nordnet Teknologi and Nordea 1
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By analyzing existing cross correlation between Nordnet Teknologi Indeks and Nordea 1 , you can compare the effects of market volatilities on Nordnet Teknologi 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 Nordnet Teknologi with a short position of Nordea 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordnet Teknologi and Nordea 1.
Diversification Opportunities for Nordnet Teknologi and Nordea 1
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordnet and Nordea is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nordnet Teknologi Indeks and Nordea 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea 1 and Nordnet Teknologi 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 Nordnet Teknologi Indeks 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 Nordnet Teknologi i.e., Nordnet Teknologi and Nordea 1 go up and down completely randomly.
Pair Corralation between Nordnet Teknologi and Nordea 1
Assuming the 90 days trading horizon Nordnet Teknologi Indeks is expected to under-perform the Nordea 1. In addition to that, Nordnet Teknologi is 1.68 times more volatile than Nordea 1 . It trades about -0.02 of its total potential returns per unit of risk. Nordea 1 is currently generating about 0.12 per unit of volatility. If you would invest 39,963 in Nordea 1 on October 20, 2024 and sell it today you would earn a total of 594.00 from holding Nordea 1 or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Nordnet Teknologi Indeks vs. Nordea 1
Performance |
| Timeline |
| Nordnet Teknologi Indeks |
| Nordea 1 |
Nordnet Teknologi and Nordea 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordnet Teknologi and Nordea 1
The main advantage of trading using opposite Nordnet Teknologi and Nordea 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordnet Teknologi 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.| Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. Franklin Floating Rate | Nordnet Teknologi vs. KLP Aksje Fremvoksende |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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