Correlation Between NORDIC HALIBUT and Great West
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Great West 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 Great West 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 Great West Lifeco, you can compare the effects of market volatilities on NORDIC HALIBUT and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Great West.
Diversification Opportunities for NORDIC HALIBUT and Great West
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Great is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifeco has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Great West go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Great West
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Great West. In addition to that, NORDIC HALIBUT is 2.46 times more volatile than Great West Lifeco. It trades about -0.02 of its total potential returns per unit of risk. Great West Lifeco is currently generating about 0.08 per unit of volatility. If you would invest 2,395 in Great West Lifeco on September 12, 2024 and sell it today you would earn a total of 805.00 from holding Great West Lifeco or generate 33.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Great West Lifeco
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Great West Lifeco |
NORDIC HALIBUT and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Great West
The main advantage of trading using opposite NORDIC HALIBUT and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West'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 |
| Great West vs. Superior Plus Corp | Great West vs. SIVERS SEMICONDUCTORS AB | Great West vs. CHINA HUARONG ENERHD 50 | Great West 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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