Correlation Between Dow Jones and Nordea Invest
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By analyzing existing cross correlation between Dow Jones Industrial and Nordea Invest Stabile, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Nordea Invest.
Diversification Opportunities for Dow Jones and Nordea Invest
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Nordea is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Nordea Invest Stabile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Stabile and Dow Jones 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 Dow Jones Industrial 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 Stabile has no effect on the direction of Dow Jones i.e., Dow Jones and Nordea Invest go up and down completely randomly.
Pair Corralation between Dow Jones and Nordea Invest
Assuming the 90 days trading horizon Dow Jones is expected to generate 4.09 times less return on investment than Nordea Invest. But when comparing it to its historical volatility, Dow Jones Industrial is 1.17 times less risky than Nordea Invest. It trades about 0.01 of its potential returns per unit of risk. Nordea Invest Stabile is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 30,710 in Nordea Invest Stabile on September 19, 2024 and sell it today you would earn a total of 190.00 from holding Nordea Invest Stabile or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dow Jones Industrial vs. Nordea Invest Stabile
Performance |
| Timeline |
Dow Jones and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Nordea Invest Stabile
Pair trading matchups for Nordea Invest
Pair Trading with Dow Jones and Nordea Invest
The main advantage of trading using opposite Dow Jones and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
| Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Skjern Bank AS | Nordea Invest vs. Danske Andelskassers Bank | Nordea Invest vs. Jyske Bank 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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