Correlation Between NORDIC HALIBUT and Ping An
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on NORDIC HALIBUT and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Ping An.
Diversification Opportunities for NORDIC HALIBUT and Ping An
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NORDIC and Ping is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Ping An go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Ping An
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Ping An. In addition to that, NORDIC HALIBUT is 1.68 times more volatile than Ping An Insurance. It trades about -0.25 of its total potential returns per unit of risk. Ping An Insurance is currently generating about 0.14 per unit of volatility. If you would invest 550.00 in Ping An Insurance on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Ping An Insurance or generate 5.82% 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. Ping An Insurance
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Ping An Insurance |
NORDIC HALIBUT and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Ping An
The main advantage of trading using opposite NORDIC HALIBUT and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An'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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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