Correlation Between BrainChip Holdings and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both BrainChip Holdings and Nordic Semiconductor 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 BrainChip Holdings and Nordic Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrainChip Holdings and Nordic Semiconductor ASA, you can compare the effects of market volatilities on BrainChip Holdings and Nordic Semiconductor 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 BrainChip Holdings with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrainChip Holdings and Nordic Semiconductor.
Diversification Opportunities for BrainChip Holdings and Nordic Semiconductor
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between BrainChip and Nordic is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BrainChip Holdings and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and BrainChip Holdings 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 BrainChip Holdings are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of BrainChip Holdings i.e., BrainChip Holdings and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between BrainChip Holdings and Nordic Semiconductor
If you would invest 1,029 in Nordic Semiconductor ASA on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Nordic Semiconductor ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BrainChip Holdings vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| BrainChip Holdings |
| Nordic Semiconductor ASA |
BrainChip Holdings and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrainChip Holdings and Nordic Semiconductor
The main advantage of trading using opposite BrainChip Holdings and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrainChip Holdings position performs unexpectedly, Nordic Semiconductor 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 Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| BrainChip Holdings vs. Sitime | BrainChip Holdings vs. Alpha and Omega | BrainChip Holdings vs. MaxLinear | BrainChip Holdings vs. NVE Corporation |
| Nordic Semiconductor vs. Nordic Semiconductor ASA | Nordic Semiconductor vs. STMicroelectronics NV | Nordic Semiconductor vs. Rohm Co Ltd | Nordic Semiconductor vs. Asm Pacific Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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