Correlation Between Moderna and NORDIC HALIBUT
Can any of the company-specific risk be diversified away by investing in both Moderna and NORDIC HALIBUT 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 Moderna and NORDIC HALIBUT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and NORDIC HALIBUT AS, you can compare the effects of market volatilities on Moderna and NORDIC HALIBUT 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 Moderna with a short position of NORDIC HALIBUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and NORDIC HALIBUT.
Diversification Opportunities for Moderna and NORDIC HALIBUT
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Moderna and NORDIC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and NORDIC HALIBUT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDIC HALIBUT AS and Moderna 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 Moderna are associated (or correlated) with NORDIC HALIBUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDIC HALIBUT AS has no effect on the direction of Moderna i.e., Moderna and NORDIC HALIBUT go up and down completely randomly.
Pair Corralation between Moderna and NORDIC HALIBUT
Assuming the 90 days horizon Moderna is expected to under-perform the NORDIC HALIBUT. In addition to that, Moderna is 1.23 times more volatile than NORDIC HALIBUT AS. It trades about -0.06 of its total potential returns per unit of risk. NORDIC HALIBUT AS is currently generating about 0.0 per unit of volatility. If you would invest 202.00 in NORDIC HALIBUT AS on September 19, 2024 and sell it today you would lose (37.00) from holding NORDIC HALIBUT AS or give up 18.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moderna vs. NORDIC HALIBUT AS
Performance |
| Timeline |
| Moderna |
| NORDIC HALIBUT AS |
Moderna and NORDIC HALIBUT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderna and NORDIC HALIBUT
The main advantage of trading using opposite Moderna and NORDIC HALIBUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna position performs unexpectedly, NORDIC HALIBUT 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 NORDIC HALIBUT will offset losses from the drop in NORDIC HALIBUT's long position.| Moderna vs. Superior Plus Corp | Moderna vs. SIVERS SEMICONDUCTORS AB | Moderna vs. NorAm Drilling AS | Moderna vs. Norsk Hydro ASA |
| NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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