Correlation Between ChemoMetec and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both ChemoMetec and NTG Nordic 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 ChemoMetec and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChemoMetec AS and NTG Nordic Transport, you can compare the effects of market volatilities on ChemoMetec and NTG Nordic 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 ChemoMetec with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChemoMetec and NTG Nordic.
Diversification Opportunities for ChemoMetec and NTG Nordic
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ChemoMetec and NTG is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ChemoMetec AS and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and ChemoMetec 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 ChemoMetec AS are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of ChemoMetec i.e., ChemoMetec and NTG Nordic go up and down completely randomly.
Pair Corralation between ChemoMetec and NTG Nordic
Assuming the 90 days trading horizon ChemoMetec AS is expected to generate 2.74 times more return on investment than NTG Nordic. However, ChemoMetec is 2.74 times more volatile than NTG Nordic Transport. It trades about 0.34 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.08 per unit of risk. If you would invest 48,200 in ChemoMetec AS on November 27, 2024 and sell it today you would earn a total of 11,100 from holding ChemoMetec AS or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChemoMetec AS vs. NTG Nordic Transport
Performance |
| Timeline |
| ChemoMetec AS |
| NTG Nordic Transport |
ChemoMetec and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChemoMetec and NTG Nordic
The main advantage of trading using opposite ChemoMetec and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChemoMetec position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| ChemoMetec vs. cBrain AS | ChemoMetec vs. Ambu AS | ChemoMetec vs. Genmab AS | ChemoMetec vs. Zealand Pharma AS |
| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |