Correlation Between NORDIC HALIBUT and Postal Savings
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Postal Savings 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 Postal Savings 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 Postal Savings Bank, you can compare the effects of market volatilities on NORDIC HALIBUT and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Postal Savings.
Diversification Opportunities for NORDIC HALIBUT and Postal Savings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NORDIC and Postal is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Postal Savings go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Postal Savings
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Postal Savings. But the stock apears to be less risky and, when comparing its historical volatility, NORDIC HALIBUT AS is 2.85 times less risky than Postal Savings. The stock trades about -0.01 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Postal Savings Bank on December 4, 2024 and sell it today you would earn a total of 44.00 from holding Postal Savings Bank or generate 275.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Postal Savings Bank
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Postal Savings Bank |
NORDIC HALIBUT and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Postal Savings
The main advantage of trading using opposite NORDIC HALIBUT and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| NORDIC HALIBUT vs. ANTA Sports Products | NORDIC HALIBUT vs. Fukuyama Transporting Co | NORDIC HALIBUT vs. BRIT AMER TOBACCO | NORDIC HALIBUT vs. SPORT LISBOA E |
| Postal Savings vs. COVIVIO HOTELS INH | Postal Savings vs. PARKEN Sport Entertainment | Postal Savings vs. Choice Hotels International | Postal Savings vs. ATRESMEDIA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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