Correlation Between AM EAGLE and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and NTG Nordic 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 AM EAGLE and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and NTG Nordic Transport, you can compare the effects of market volatilities on AM EAGLE and NTG Nordic 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 AM EAGLE with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and NTG Nordic.
Diversification Opportunities for AM EAGLE and NTG Nordic
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AFG and NTG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and AM EAGLE 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 AM EAGLE OUTFITTERS are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of AM EAGLE i.e., AM EAGLE and NTG Nordic go up and down completely randomly.
Pair Corralation between AM EAGLE and NTG Nordic
Assuming the 90 days trading horizon AM EAGLE OUTFITTERS is expected to under-perform the NTG Nordic. In addition to that, AM EAGLE is 1.12 times more volatile than NTG Nordic Transport. It trades about -0.02 of its total potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.0 per unit of volatility. If you would invest 3,935 in NTG Nordic Transport on September 1, 2024 and sell it today you would lose (105.00) from holding NTG Nordic Transport or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. NTG Nordic Transport
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| NTG Nordic Transport |
AM EAGLE and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and NTG Nordic
The main advantage of trading using opposite AM EAGLE and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech | NTG Nordic 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |