Correlation Between NORDIC HALIBUT and Komercn Banka
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Komercn Banka 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 Komercn Banka 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 Komercn banka as, you can compare the effects of market volatilities on NORDIC HALIBUT and Komercn Banka 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 Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Komercn Banka.
Diversification Opportunities for NORDIC HALIBUT and Komercn Banka
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Komercn is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as 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 Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Komercn Banka go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Komercn Banka
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Komercn Banka. In addition to that, NORDIC HALIBUT is 2.09 times more volatile than Komercn banka as. It trades about -0.25 of its total potential returns per unit of risk. Komercn banka as is currently generating about 0.14 per unit of volatility. If you would invest 3,092 in Komercn banka as on September 13, 2024 and sell it today you would earn a total of 234.00 from holding Komercn banka as or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Komercn banka as
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Komercn banka as |
NORDIC HALIBUT and Komercn Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Komercn Banka
The main advantage of trading using opposite NORDIC HALIBUT and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka'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 |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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