Correlation Between NORDIC HALIBUT and Sino AG
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Sino AG 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 Sino AG 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 Sino AG, you can compare the effects of market volatilities on NORDIC HALIBUT and Sino AG 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 Sino AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Sino AG.
Diversification Opportunities for NORDIC HALIBUT and Sino AG
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Sino is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Sino AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino AG 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 Sino AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino AG has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Sino AG go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Sino AG
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Sino AG. In addition to that, NORDIC HALIBUT is 1.02 times more volatile than Sino AG. It trades about 0.0 of its total potential returns per unit of risk. Sino AG is currently generating about 0.11 per unit of volatility. If you would invest 2,850 in Sino AG on September 12, 2024 and sell it today you would earn a total of 3,750 from holding Sino AG or generate 131.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Sino AG
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Sino AG |
NORDIC HALIBUT and Sino AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Sino AG
The main advantage of trading using opposite NORDIC HALIBUT and Sino AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Sino AG 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 Sino AG will offset losses from the drop in Sino AG's long position.| NORDIC HALIBUT vs. BJs Wholesale Club | NORDIC HALIBUT vs. Ross Stores | NORDIC HALIBUT vs. PICKN PAY STORES | NORDIC HALIBUT vs. Solstad Offshore ASA |
| Sino AG vs. Superior Plus Corp | Sino AG vs. SIVERS SEMICONDUCTORS AB | Sino AG vs. CHINA HUARONG ENERHD 50 | Sino AG vs. NORDIC HALIBUT AS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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