Correlation Between Brockhaus Capital and NORWEGIAN AIR
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital and NORWEGIAN AIR 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 Brockhaus Capital and NORWEGIAN AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and NORWEGIAN AIR SHUT, you can compare the effects of market volatilities on Brockhaus Capital and NORWEGIAN AIR 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 Brockhaus Capital with a short position of NORWEGIAN AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and NORWEGIAN AIR.
Diversification Opportunities for Brockhaus Capital and NORWEGIAN AIR
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brockhaus and NORWEGIAN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and NORWEGIAN AIR SHUT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORWEGIAN AIR SHUT and Brockhaus Capital 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 Brockhaus Capital Management are associated (or correlated) with NORWEGIAN AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORWEGIAN AIR SHUT has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and NORWEGIAN AIR go up and down completely randomly.
Pair Corralation between Brockhaus Capital and NORWEGIAN AIR
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the NORWEGIAN AIR. In addition to that, Brockhaus Capital is 1.07 times more volatile than NORWEGIAN AIR SHUT. It trades about -0.09 of its total potential returns per unit of risk. NORWEGIAN AIR SHUT is currently generating about 0.03 per unit of volatility. If you would invest 91.00 in NORWEGIAN AIR SHUT on December 10, 2024 and sell it today you would earn a total of 5.00 from holding NORWEGIAN AIR SHUT or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. NORWEGIAN AIR SHUT
Performance |
| Timeline |
| Brockhaus Capital |
| NORWEGIAN AIR SHUT |
Brockhaus Capital and NORWEGIAN AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and NORWEGIAN AIR
The main advantage of trading using opposite Brockhaus Capital and NORWEGIAN AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital position performs unexpectedly, NORWEGIAN AIR 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 NORWEGIAN AIR will offset losses from the drop in NORWEGIAN AIR's long position.| Brockhaus Capital vs. SOEDER SPORTFISKE AB | Brockhaus Capital vs. Transport International Holdings | Brockhaus Capital vs. Globe Trade Centre | Brockhaus Capital vs. CarsalesCom |
| NORWEGIAN AIR vs. Columbia Sportswear | NORWEGIAN AIR vs. Spirent Communications plc | NORWEGIAN AIR vs. Micron Technology | NORWEGIAN AIR vs. Beijing Media |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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