Correlation Between NORDIC HALIBUT and ALLIANZ SE
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and ALLIANZ SE 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 ALLIANZ SE 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 ALLIANZ SE UNSPADR, you can compare the effects of market volatilities on NORDIC HALIBUT and ALLIANZ SE 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 ALLIANZ SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and ALLIANZ SE.
Diversification Opportunities for NORDIC HALIBUT and ALLIANZ SE
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NORDIC and ALLIANZ is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and ALLIANZ SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ SE UNSPADR 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 ALLIANZ SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ SE UNSPADR has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and ALLIANZ SE go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and ALLIANZ SE
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the ALLIANZ SE. In addition to that, NORDIC HALIBUT is 1.46 times more volatile than ALLIANZ SE UNSPADR. It trades about -0.02 of its total potential returns per unit of risk. ALLIANZ SE UNSPADR is currently generating about 0.07 per unit of volatility. If you would invest 1,968 in ALLIANZ SE UNSPADR on September 12, 2024 and sell it today you would earn a total of 992.00 from holding ALLIANZ SE UNSPADR or generate 50.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. ALLIANZ SE UNSPADR
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| ALLIANZ SE UNSPADR |
NORDIC HALIBUT and ALLIANZ SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and ALLIANZ SE
The main advantage of trading using opposite NORDIC HALIBUT and ALLIANZ SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, ALLIANZ SE 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 ALLIANZ SE will offset losses from the drop in ALLIANZ SE's long position.| NORDIC HALIBUT vs. BJs Wholesale Club | NORDIC HALIBUT vs. Ross Stores | NORDIC HALIBUT vs. PICKN PAY STORES | NORDIC HALIBUT vs. Solstad Offshore ASA |
| ALLIANZ SE vs. Superior Plus Corp | ALLIANZ SE vs. SIVERS SEMICONDUCTORS AB | ALLIANZ SE vs. CHINA HUARONG ENERHD 50 | ALLIANZ SE vs. NORDIC HALIBUT AS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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