Correlation Between NORDIC HALIBUT and Regions Financial
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on NORDIC HALIBUT and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Regions Financial.
Diversification Opportunities for NORDIC HALIBUT and Regions Financial
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Regions is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Regions Financial go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Regions Financial
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Regions Financial. In addition to that, NORDIC HALIBUT is 2.72 times more volatile than Regions Financial. It trades about -0.23 of its total potential returns per unit of risk. Regions Financial is currently generating about -0.05 per unit of volatility. If you would invest 2,436 in Regions Financial on September 13, 2024 and sell it today you would lose (36.00) from holding Regions Financial or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Regions Financial
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Regions Financial |
NORDIC HALIBUT and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Regions Financial
The main advantage of trading using opposite NORDIC HALIBUT and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| NORDIC HALIBUT vs. Verizon Communications | NORDIC HALIBUT vs. Consolidated Communications Holdings | NORDIC HALIBUT vs. ARDAGH METAL PACDL 0001 | NORDIC HALIBUT vs. Cogent Communications Holdings |
| Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. Superior Plus Corp | Regions Financial vs. SIVERS SEMICONDUCTORS AB | Regions Financial vs. CHINA HUARONG ENERHD 50 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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