Correlation Between NORDIC HALIBUT and Hormel Foods
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Hormel Foods 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 Hormel Foods 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 Hormel Foods, you can compare the effects of market volatilities on NORDIC HALIBUT and Hormel Foods 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 Hormel Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Hormel Foods.
Diversification Opportunities for NORDIC HALIBUT and Hormel Foods
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Hormel is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Hormel Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hormel Foods 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 Hormel Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hormel Foods has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Hormel Foods go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Hormel Foods
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to generate 1.57 times more return on investment than Hormel Foods. However, NORDIC HALIBUT is 1.57 times more volatile than Hormel Foods. It trades about 0.0 of its potential returns per unit of risk. Hormel Foods is currently generating about -0.01 per unit of risk. If you would invest 202.00 in NORDIC HALIBUT AS on September 12, 2024 and sell it today you would lose (29.00) from holding NORDIC HALIBUT AS or give up 14.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Hormel Foods
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Hormel Foods |
NORDIC HALIBUT and Hormel Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Hormel Foods
The main advantage of trading using opposite NORDIC HALIBUT and Hormel Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Hormel Foods 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 Hormel Foods will offset losses from the drop in Hormel Foods' 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 |
| Hormel Foods vs. Shenandoah Telecommunications | Hormel Foods vs. Iridium Communications | Hormel Foods vs. Ribbon Communications | Hormel Foods vs. Citic Telecom International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |