Correlation Between EPlay Digital and NORDHEALTH
Can any of the company-specific risk be diversified away by investing in both EPlay Digital and NORDHEALTH 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 EPlay Digital and NORDHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlay Digital and NORDHEALTH AS NK, you can compare the effects of market volatilities on EPlay Digital and NORDHEALTH 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 EPlay Digital with a short position of NORDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlay Digital and NORDHEALTH.
Diversification Opportunities for EPlay Digital and NORDHEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPlay and NORDHEALTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ePlay Digital and NORDHEALTH AS NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDHEALTH AS NK and EPlay Digital 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 ePlay Digital are associated (or correlated) with NORDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDHEALTH AS NK has no effect on the direction of EPlay Digital i.e., EPlay Digital and NORDHEALTH go up and down completely randomly.
Pair Corralation between EPlay Digital and NORDHEALTH
If you would invest 294.00 in NORDHEALTH AS NK on September 1, 2024 and sell it today you would earn a total of 45.00 from holding NORDHEALTH AS NK or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlay Digital vs. NORDHEALTH AS NK
Performance |
| Timeline |
| ePlay Digital |
| NORDHEALTH AS NK |
EPlay Digital and NORDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlay Digital and NORDHEALTH
The main advantage of trading using opposite EPlay Digital and NORDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlay Digital position performs unexpectedly, NORDHEALTH 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 NORDHEALTH will offset losses from the drop in NORDHEALTH's long position.| EPlay Digital vs. Apple Inc | EPlay Digital vs. Apple Inc | EPlay Digital vs. Apple Inc | EPlay Digital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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