Correlation Between Carnegie Wealth and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Carnegie Wealth and Nordea Bank 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 Carnegie Wealth and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Wealth Management and Nordea Bank Abp, you can compare the effects of market volatilities on Carnegie Wealth and Nordea Bank 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 Carnegie Wealth with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Wealth and Nordea Bank.
Diversification Opportunities for Carnegie Wealth and Nordea Bank
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and Nordea is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Wealth Management and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Carnegie Wealth 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 Carnegie Wealth Management are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Carnegie Wealth i.e., Carnegie Wealth and Nordea Bank go up and down completely randomly.
Pair Corralation between Carnegie Wealth and Nordea Bank
Assuming the 90 days trading horizon Carnegie Wealth Management is expected to generate 0.81 times more return on investment than Nordea Bank. However, Carnegie Wealth Management is 1.23 times less risky than Nordea Bank. It trades about 0.07 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.02 per unit of risk. If you would invest 10,770 in Carnegie Wealth Management on August 25, 2024 and sell it today you would earn a total of 1,835 from holding Carnegie Wealth Management or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Carnegie Wealth Management vs. Nordea Bank Abp
Performance |
| Timeline |
| Carnegie Wealth Mana |
| Nordea Bank Abp |
Carnegie Wealth and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Wealth and Nordea Bank
The main advantage of trading using opposite Carnegie Wealth and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Wealth position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.| Carnegie Wealth vs. Novo Nordisk AS | Carnegie Wealth vs. Nordea Bank Abp | Carnegie Wealth vs. DSV Panalpina AS | Carnegie Wealth vs. AP Mller |
| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |