Correlation Between Scandinavian ChemoTech and Nordic Iron
Specify exactly 2 symbols:
By analyzing existing cross correlation between Scandinavian ChemoTech AB and Nordic Iron Ore, you can compare the effects of market volatilities on Scandinavian ChemoTech and Nordic Iron 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 Scandinavian ChemoTech with a short position of Nordic Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian ChemoTech and Nordic Iron.
Diversification Opportunities for Scandinavian ChemoTech and Nordic Iron
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and Nordic is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian ChemoTech AB and Nordic Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Iron Ore and Scandinavian ChemoTech 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 Scandinavian ChemoTech AB are associated (or correlated) with Nordic Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Iron Ore has no effect on the direction of Scandinavian ChemoTech i.e., Scandinavian ChemoTech and Nordic Iron go up and down completely randomly.
Pair Corralation between Scandinavian ChemoTech and Nordic Iron
Assuming the 90 days trading horizon Scandinavian ChemoTech AB is expected to under-perform the Nordic Iron. In addition to that, Scandinavian ChemoTech is 1.06 times more volatile than Nordic Iron Ore. It trades about -0.03 of its total potential returns per unit of risk. Nordic Iron Ore is currently generating about 0.05 per unit of volatility. If you would invest 466.00 in Nordic Iron Ore on September 3, 2024 and sell it today you would earn a total of 34.00 from holding Nordic Iron Ore or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian ChemoTech AB vs. Nordic Iron Ore
Performance |
| Timeline |
| Scandinavian ChemoTech |
| Nordic Iron Ore |
Scandinavian ChemoTech and Nordic Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian ChemoTech and Nordic Iron
The main advantage of trading using opposite Scandinavian ChemoTech and Nordic Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian ChemoTech position performs unexpectedly, Nordic Iron 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 Iron will offset losses from the drop in Nordic Iron's long position.| Scandinavian ChemoTech vs. Vicore Pharma Holding | Scandinavian ChemoTech vs. Enorama Pharma AB | Scandinavian ChemoTech vs. Xintela AB | Scandinavian ChemoTech vs. Alzinova AB |
| Nordic Iron vs. Leading Edge Materials | Nordic Iron vs. Alzinova AB | Nordic Iron vs. SaltX Technology Holding | Nordic Iron vs. KABE Group AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |