Correlation Between Alefarm Brewing and Nordea Invest
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By analyzing existing cross correlation between Alefarm Brewing AS and Nordea Invest Aktier, you can compare the effects of market volatilities on Alefarm Brewing and Nordea Invest 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 Alefarm Brewing with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and Nordea Invest.
Diversification Opportunities for Alefarm Brewing and Nordea Invest
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alefarm and Nordea is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Aktier has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Nordea Invest go up and down completely randomly.
Pair Corralation between Alefarm Brewing and Nordea Invest
Assuming the 90 days trading horizon Alefarm Brewing AS is expected to under-perform the Nordea Invest. In addition to that, Alefarm Brewing is 4.74 times more volatile than Nordea Invest Aktier. It trades about -0.28 of its total potential returns per unit of risk. Nordea Invest Aktier is currently generating about -0.15 per unit of volatility. If you would invest 55,270 in Nordea Invest Aktier on September 25, 2024 and sell it today you would lose (1,020) from holding Nordea Invest Aktier or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Alefarm Brewing AS vs. Nordea Invest Aktier
Performance |
| Timeline |
| Alefarm Brewing AS |
| Nordea Invest Aktier |
Alefarm Brewing and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alefarm Brewing and Nordea Invest
The main advantage of trading using opposite Alefarm Brewing and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alefarm Brewing position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Alefarm Brewing vs. Jyske Invest Virksomhedsobligationer | Alefarm Brewing vs. Handelsinvest Danske Obligationer | Alefarm Brewing vs. PARKEN Sport Entertainment | Alefarm Brewing vs. Netcompany Group AS |
| Nordea Invest vs. Hvidbjerg Bank | Nordea Invest vs. Lollands Bank | Nordea Invest vs. Embla Medical hf | Nordea Invest vs. Alefarm Brewing 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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