Correlation Between NORDIC HALIBUT and GPT
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and GPT 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 GPT 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 GPT Group, you can compare the effects of market volatilities on NORDIC HALIBUT and GPT 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 GPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and GPT.
Diversification Opportunities for NORDIC HALIBUT and GPT
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NORDIC and GPT is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and GPT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Group 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 GPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Group has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and GPT go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and GPT
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the GPT. In addition to that, NORDIC HALIBUT is 1.35 times more volatile than GPT Group. It trades about -0.25 of its total potential returns per unit of risk. GPT Group is currently generating about -0.07 per unit of volatility. If you would invest 277.00 in GPT Group on September 13, 2024 and sell it today you would lose (11.00) from holding GPT Group or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. GPT Group
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| GPT Group |
NORDIC HALIBUT and GPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and GPT
The main advantage of trading using opposite NORDIC HALIBUT and GPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, GPT 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 GPT will offset losses from the drop in GPT's long position.| NORDIC HALIBUT vs. HEALTHCARE REAL A | NORDIC HALIBUT vs. ANTA SPORTS PRODUCT | NORDIC HALIBUT vs. Big 5 Sporting | NORDIC HALIBUT vs. ATRYS HEALTH SA |
| GPT vs. Shin Etsu Chemical Co | GPT vs. MagnaChip Semiconductor Corp | GPT vs. Sanyo Chemical Industries | GPT vs. Nordic Semiconductor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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