Correlation Between NORDIC HALIBUT and CREMECOMTRSBI
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and CREMECOMTRSBI 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 CREMECOMTRSBI 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 CREMECOMTRSBI DL 001, you can compare the effects of market volatilities on NORDIC HALIBUT and CREMECOMTRSBI 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 CREMECOMTRSBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and CREMECOMTRSBI.
Diversification Opportunities for NORDIC HALIBUT and CREMECOMTRSBI
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NORDIC and CREMECOMTRSBI is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and CREMECOMTRSBI DL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREMECOMTRSBI DL 001 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 CREMECOMTRSBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREMECOMTRSBI DL 001 has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and CREMECOMTRSBI go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and CREMECOMTRSBI
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the CREMECOMTRSBI. But the stock apears to be less risky and, when comparing its historical volatility, NORDIC HALIBUT AS is 27.02 times less risky than CREMECOMTRSBI. The stock trades about -0.25 of its potential returns per unit of risk. The CREMECOMTRSBI DL 001 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 53.00 in CREMECOMTRSBI DL 001 on September 13, 2024 and sell it today you would lose (33.00) from holding CREMECOMTRSBI DL 001 or give up 62.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. CREMECOMTRSBI DL 001
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| CREMECOMTRSBI DL 001 |
NORDIC HALIBUT and CREMECOMTRSBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and CREMECOMTRSBI
The main advantage of trading using opposite NORDIC HALIBUT and CREMECOMTRSBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, CREMECOMTRSBI 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 CREMECOMTRSBI will offset losses from the drop in CREMECOMTRSBI'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 |
| CREMECOMTRSBI vs. Office Properties Income | CREMECOMTRSBI vs. CITY OFFICE REIT | CREMECOMTRSBI vs. Superior Plus Corp | CREMECOMTRSBI vs. SIVERS SEMICONDUCTORS AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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