Correlation Between NORDIC HALIBUT and Intel
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on NORDIC HALIBUT and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Intel.
Diversification Opportunities for NORDIC HALIBUT and Intel
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NORDIC and Intel is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Intel go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Intel
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to generate 0.64 times more return on investment than Intel. However, NORDIC HALIBUT AS is 1.56 times less risky than Intel. It trades about 0.0 of its potential returns per unit of risk. Intel is currently generating about -0.02 per unit of risk. If you would invest 185.00 in NORDIC HALIBUT AS on September 1, 2024 and sell it today you would lose (5.00) from holding NORDIC HALIBUT AS or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Intel
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Intel |
NORDIC HALIBUT and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Intel
The main advantage of trading using opposite NORDIC HALIBUT and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc | NORDIC HALIBUT vs. Apple Inc |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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