Correlation Between PF BankNordik and Embla Medical
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By analyzing existing cross correlation between PF BankNordik and Embla Medical hf, you can compare the effects of market volatilities on PF BankNordik and Embla Medical 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 PF BankNordik with a short position of Embla Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PF BankNordik and Embla Medical.
Diversification Opportunities for PF BankNordik and Embla Medical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BNORDIK-CSE and Embla is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PF BankNordik and Embla Medical hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embla Medical hf and PF BankNordik 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 PF BankNordik are associated (or correlated) with Embla Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embla Medical hf has no effect on the direction of PF BankNordik i.e., PF BankNordik and Embla Medical go up and down completely randomly.
Pair Corralation between PF BankNordik and Embla Medical
Assuming the 90 days trading horizon PF BankNordik is expected to under-perform the Embla Medical. But the stock apears to be less risky and, when comparing its historical volatility, PF BankNordik is 1.49 times less risky than Embla Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Embla Medical hf is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,530 in Embla Medical hf on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Embla Medical hf or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 60.87% |
| Values | Daily Returns |
PF BankNordik vs. Embla Medical hf
Performance |
| Timeline |
| PF BankNordik |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Embla Medical hf |
PF BankNordik and Embla Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PF BankNordik and Embla Medical
The main advantage of trading using opposite PF BankNordik and Embla Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PF BankNordik position performs unexpectedly, Embla Medical 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 Embla Medical will offset losses from the drop in Embla Medical's long position.| PF BankNordik vs. Spar Nord Bank | PF BankNordik vs. Sydbank AS | PF BankNordik vs. Jyske Bank AS | PF BankNordik vs. Dampskibsselskabet Norden AS |
| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical vs. AP Mller |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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