Correlation Between Carnegie Wealth and Nordea Invest
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By analyzing existing cross correlation between Carnegie Wealth Management and Nordea Invest Danske, you can compare the effects of market volatilities on Carnegie Wealth and Nordea Invest 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 Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Wealth and Nordea Invest.
Diversification Opportunities for Carnegie Wealth and Nordea Invest
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carnegie and Nordea is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Wealth Management and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske 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 Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of Carnegie Wealth i.e., Carnegie Wealth and Nordea Invest go up and down completely randomly.
Pair Corralation between Carnegie Wealth and Nordea Invest
Assuming the 90 days trading horizon Carnegie Wealth Management is expected to generate 1.31 times more return on investment than Nordea Invest. However, Carnegie Wealth is 1.31 times more volatile than Nordea Invest Danske. It trades about -0.1 of its potential returns per unit of risk. Nordea Invest Danske is currently generating about -0.2 per unit of risk. If you would invest 12,605 in Carnegie Wealth Management on September 23, 2024 and sell it today you would lose (290.00) from holding Carnegie Wealth Management or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Wealth Management vs. Nordea Invest Danske
Performance |
| Timeline |
| Carnegie Wealth Mana |
| Nordea Invest Danske |
Carnegie Wealth and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Wealth and Nordea Invest
The main advantage of trading using opposite Carnegie Wealth and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Wealth position performs unexpectedly, Nordea Invest 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 Invest will offset losses from the drop in Nordea Invest'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 Invest vs. Alefarm Brewing AS | Nordea Invest vs. Carnegie Wealth Management | Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Prime Office 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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