Correlation Between Coloplast and Nordea Invest
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By analyzing existing cross correlation between Coloplast AS and Nordea Invest Aktier, you can compare the effects of market volatilities on Coloplast 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 Coloplast with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Nordea Invest.
Diversification Opportunities for Coloplast and Nordea Invest
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coloplast and Nordea is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier and Coloplast 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 Coloplast AS 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 Aktier has no effect on the direction of Coloplast i.e., Coloplast and Nordea Invest go up and down completely randomly.
Pair Corralation between Coloplast and Nordea Invest
Assuming the 90 days trading horizon Coloplast is expected to generate 1.55 times less return on investment than Nordea Invest. In addition to that, Coloplast is 1.89 times more volatile than Nordea Invest Aktier. It trades about 0.03 of its total potential returns per unit of risk. Nordea Invest Aktier is currently generating about 0.08 per unit of volatility. If you would invest 46,190 in Nordea Invest Aktier on October 1, 2024 and sell it today you would earn a total of 8,510 from holding Nordea Invest Aktier or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.76% |
| Values | Daily Returns |
Coloplast AS vs. Nordea Invest Aktier
Performance |
| Timeline |
| Coloplast AS |
| Nordea Invest Aktier |
Coloplast and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Nordea Invest
The main advantage of trading using opposite Coloplast and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast 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.| Coloplast vs. DSV Panalpina AS | Coloplast vs. GN Store Nord | Coloplast vs. Ambu AS | Coloplast vs. Danske Invest |
| Nordea Invest vs. Strategic Investments AS | Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Kreditbanken AS | Nordea Invest vs. Scandinavian Tobacco Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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