Correlation Between Athelney Trust and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Athelney Trust and Nordea Bank 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 Athelney Trust and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athelney Trust plc and Nordea Bank Abp, you can compare the effects of market volatilities on Athelney Trust and Nordea Bank 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 Athelney Trust with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athelney Trust and Nordea Bank.
Diversification Opportunities for Athelney Trust and Nordea Bank
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Athelney and Nordea is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Athelney Trust plc and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Athelney Trust 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 Athelney Trust plc are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Athelney Trust i.e., Athelney Trust and Nordea Bank go up and down completely randomly.
Pair Corralation between Athelney Trust and Nordea Bank
Assuming the 90 days trading horizon Athelney Trust plc is expected to generate 1.15 times more return on investment than Nordea Bank. However, Athelney Trust is 1.15 times more volatile than Nordea Bank Abp. It trades about 0.23 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.04 per unit of risk. If you would invest 17,500 in Athelney Trust plc on October 11, 2024 and sell it today you would earn a total of 1,000.00 from holding Athelney Trust plc or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Athelney Trust plc vs. Nordea Bank Abp
Performance |
| Timeline |
| Athelney Trust plc |
| Nordea Bank Abp |
Athelney Trust and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athelney Trust and Nordea Bank
The main advantage of trading using opposite Athelney Trust and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athelney Trust position performs unexpectedly, Nordea Bank 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 Bank will offset losses from the drop in Nordea Bank's long position.| Athelney Trust vs. Foresight Environmental Infrastructure | Athelney Trust vs. Zoom Video Communications | Athelney Trust vs. JLEN Environmental Assets | Athelney Trust vs. MTI Wireless Edge |
| Nordea Bank vs. Intermediate Capital Group | Nordea Bank vs. Zoom Video Communications | Nordea Bank vs. One Media iP | Nordea Bank vs. Zinc Media Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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