Correlation Between Dataproces Group and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Dataproces Group and NTG Nordic 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 Dataproces Group and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataproces Group AS and NTG Nordic Transport, you can compare the effects of market volatilities on Dataproces Group and NTG Nordic 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 Dataproces Group with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and NTG Nordic.
Diversification Opportunities for Dataproces Group and NTG Nordic
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dataproces and NTG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and Dataproces Group 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 Dataproces Group AS are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Dataproces Group i.e., Dataproces Group and NTG Nordic go up and down completely randomly.
Pair Corralation between Dataproces Group and NTG Nordic
Assuming the 90 days trading horizon Dataproces Group AS is expected to generate 1.77 times more return on investment than NTG Nordic. However, Dataproces Group is 1.77 times more volatile than NTG Nordic Transport. It trades about 0.05 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.52 per unit of risk. If you would invest 585.00 in Dataproces Group AS on September 19, 2024 and sell it today you would earn a total of 10.00 from holding Dataproces Group AS or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dataproces Group AS vs. NTG Nordic Transport
Performance |
| Timeline |
| Dataproces Group |
| NTG Nordic Transport |
Dataproces Group and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dataproces Group and NTG Nordic
The main advantage of trading using opposite Dataproces Group and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab AS |
| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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