Correlation Between INTER CARS and Norma Group
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By analyzing existing cross correlation between INTER CARS SA and Norma Group AG, you can compare the effects of market volatilities on INTER CARS and Norma Group 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 INTER CARS with a short position of Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Norma Group.
Diversification Opportunities for INTER CARS and Norma Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTER and Norma is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG and INTER CARS 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 INTER CARS SA are associated (or correlated) with Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of INTER CARS i.e., INTER CARS and Norma Group go up and down completely randomly.
Pair Corralation between INTER CARS and Norma Group
Assuming the 90 days horizon INTER CARS is expected to generate 2.23 times less return on investment than Norma Group. In addition to that, INTER CARS is 1.06 times more volatile than Norma Group AG. It trades about 0.01 of its total potential returns per unit of risk. Norma Group AG is currently generating about 0.01 per unit of volatility. If you would invest 1,538 in Norma Group AG on September 12, 2024 and sell it today you would earn a total of 36.00 from holding Norma Group AG or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
INTER CARS SA vs. Norma Group AG
Performance |
| Timeline |
| INTER CARS SA |
| Norma Group AG |
INTER CARS and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Norma Group
The main advantage of trading using opposite INTER CARS and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group's long position.| INTER CARS vs. Bridgestone | INTER CARS vs. Superior Plus Corp | INTER CARS vs. SIVERS SEMICONDUCTORS AB | INTER CARS vs. Norsk Hydro ASA |
| Norma Group vs. REINET INVESTMENTS SCA | Norma Group vs. Virtus Investment Partners | Norma Group vs. PennantPark Investment | Norma Group vs. INTER CARS SA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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