Correlation Between NEL ASA and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both NEL ASA and CIG PANNONIA 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 NEL ASA and CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEL ASA ADR30 and CIG PANNONIA LIFE, you can compare the effects of market volatilities on NEL ASA and CIG PANNONIA 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 NEL ASA with a short position of CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEL ASA and CIG PANNONIA.
Diversification Opportunities for NEL ASA and CIG PANNONIA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEL and CIG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEL ASA ADR30 and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE and NEL ASA 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 NEL ASA ADR30 are associated (or correlated) with CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of NEL ASA i.e., NEL ASA and CIG PANNONIA go up and down completely randomly.
Pair Corralation between NEL ASA and CIG PANNONIA
If you would invest 84.00 in CIG PANNONIA LIFE on October 24, 2024 and sell it today you would earn a total of 12.00 from holding CIG PANNONIA LIFE or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
NEL ASA ADR30 vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| NEL ASA ADR30 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CIG PANNONIA LIFE |
NEL ASA and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEL ASA and CIG PANNONIA
The main advantage of trading using opposite NEL ASA and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEL ASA position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.| NEL ASA vs. Chesapeake Utilities | NEL ASA vs. NORTHEAST UTILITIES | NEL ASA vs. CyberArk Software | NEL ASA vs. Rayonier Advanced Materials |
| CIG PANNONIA vs. AUTO TRADER ADR | CIG PANNONIA vs. Indutrade AB | CIG PANNONIA vs. Tradegate AG Wertpapierhandelsbank | CIG PANNONIA vs. MeVis Medical Solutions |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |