Correlation Between MAVEN WIRELESS and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and NTG Nordic 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 MAVEN WIRELESS and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and NTG Nordic Transport, you can compare the effects of market volatilities on MAVEN WIRELESS and NTG Nordic 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 MAVEN WIRELESS with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and NTG Nordic.
Diversification Opportunities for MAVEN WIRELESS and NTG Nordic
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAVEN and NTG is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and NTG Nordic go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and NTG Nordic
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to generate 2.38 times more return on investment than NTG Nordic. However, MAVEN WIRELESS is 2.38 times more volatile than NTG Nordic Transport. It trades about 0.24 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.21 per unit of risk. If you would invest 84.00 in MAVEN WIRELESS SWEDEN on November 5, 2024 and sell it today you would earn a total of 18.00 from holding MAVEN WIRELESS SWEDEN or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. NTG Nordic Transport
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| NTG Nordic Transport |
MAVEN WIRELESS and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and NTG Nordic
The main advantage of trading using opposite MAVEN WIRELESS and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| MAVEN WIRELESS vs. BAKED GAMES SA | MAVEN WIRELESS vs. GAMES OPERATORS SA | MAVEN WIRELESS vs. IMPERIAL TOBACCO | MAVEN WIRELESS vs. Phibro Animal Health |
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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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