Correlation Between NORDIC HALIBUT and Moderna
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Moderna 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 NORDIC HALIBUT and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and Moderna, you can compare the effects of market volatilities on NORDIC HALIBUT and Moderna 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 NORDIC HALIBUT with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Moderna.
Diversification Opportunities for NORDIC HALIBUT and Moderna
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NORDIC and Moderna is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and NORDIC HALIBUT 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 NORDIC HALIBUT AS are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Moderna go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Moderna
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Moderna. In addition to that, NORDIC HALIBUT is 1.03 times more volatile than Moderna. It trades about -0.15 of its total potential returns per unit of risk. Moderna is currently generating about 0.15 per unit of volatility. If you would invest 3,522 in Moderna on September 20, 2024 and sell it today you would earn a total of 378.00 from holding Moderna or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Moderna
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Moderna |
NORDIC HALIBUT and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Moderna
The main advantage of trading using opposite NORDIC HALIBUT and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc |
| Moderna vs. Superior Plus Corp | Moderna vs. SIVERS SEMICONDUCTORS AB | Moderna vs. NorAm Drilling AS | Moderna vs. Norsk Hydro ASA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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