Correlation Between GREENX METALS and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Nordic Semiconductor 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 GREENX METALS and Nordic Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Nordic Semiconductor ASA, you can compare the effects of market volatilities on GREENX METALS and Nordic Semiconductor 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 GREENX METALS with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Nordic Semiconductor.
Diversification Opportunities for GREENX METALS and Nordic Semiconductor
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and Nordic is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of GREENX METALS i.e., GREENX METALS and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between GREENX METALS and Nordic Semiconductor
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Nordic Semiconductor. In addition to that, GREENX METALS is 2.5 times more volatile than Nordic Semiconductor ASA. It trades about -0.05 of its total potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.01 per unit of volatility. If you would invest 848.00 in Nordic Semiconductor ASA on September 16, 2024 and sell it today you would earn a total of 2.00 from holding Nordic Semiconductor ASA or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| GREENX METALS LTD |
| Nordic Semiconductor ASA |
GREENX METALS and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Nordic Semiconductor
The main advantage of trading using opposite GREENX METALS and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Nordic Semiconductor 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 Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
| Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Broadcom | Nordic Semiconductor vs. Superior Plus Corp | Nordic Semiconductor vs. SIVERS SEMICONDUCTORS AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| 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 |