Correlation Between Aurskog Sparebank and Nordic Unmanned
Can any of the company-specific risk be diversified away by investing in both Aurskog Sparebank and Nordic Unmanned 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 Aurskog Sparebank and Nordic Unmanned into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurskog Sparebank and Nordic Unmanned As, you can compare the effects of market volatilities on Aurskog Sparebank and Nordic Unmanned 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 Aurskog Sparebank with a short position of Nordic Unmanned. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurskog Sparebank and Nordic Unmanned.
Diversification Opportunities for Aurskog Sparebank and Nordic Unmanned
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurskog and Nordic is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aurskog Sparebank and Nordic Unmanned As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Unmanned As and Aurskog Sparebank 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 Aurskog Sparebank are associated (or correlated) with Nordic Unmanned. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Unmanned As has no effect on the direction of Aurskog Sparebank i.e., Aurskog Sparebank and Nordic Unmanned go up and down completely randomly.
Pair Corralation between Aurskog Sparebank and Nordic Unmanned
Assuming the 90 days trading horizon Aurskog Sparebank is expected to under-perform the Nordic Unmanned. But the stock apears to be less risky and, when comparing its historical volatility, Aurskog Sparebank is 5.15 times less risky than Nordic Unmanned. The stock trades about -0.06 of its potential returns per unit of risk. The Nordic Unmanned As is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Nordic Unmanned As on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Nordic Unmanned As or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurskog Sparebank vs. Nordic Unmanned As
Performance |
| Timeline |
| Aurskog Sparebank |
| Nordic Unmanned As |
Aurskog Sparebank and Nordic Unmanned Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurskog Sparebank and Nordic Unmanned
The main advantage of trading using opposite Aurskog Sparebank and Nordic Unmanned positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurskog Sparebank position performs unexpectedly, Nordic Unmanned 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 Nordic Unmanned will offset losses from the drop in Nordic Unmanned's long position.| Aurskog Sparebank vs. Melhus Sparebank | Aurskog Sparebank vs. Holand og Setskog | Aurskog Sparebank vs. Helgeland Sparebank |
| Nordic Unmanned vs. Aurskog Sparebank | Nordic Unmanned vs. Melhus Sparebank | Nordic Unmanned vs. Clean Seas Seafood | Nordic Unmanned vs. Instabank ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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