Correlation Between Embla Medical and Nordea Invest
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By analyzing existing cross correlation between Embla Medical hf and Nordea Invest Aktier, you can compare the effects of market volatilities on Embla Medical 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 Embla Medical with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embla Medical and Nordea Invest.
Diversification Opportunities for Embla Medical and Nordea Invest
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Embla and Nordea is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Embla Medical hf 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 Embla Medical 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 Embla Medical hf 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 Embla Medical i.e., Embla Medical and Nordea Invest go up and down completely randomly.
Pair Corralation between Embla Medical and Nordea Invest
Assuming the 90 days trading horizon Embla Medical hf is expected to generate 2.37 times more return on investment than Nordea Invest. However, Embla Medical is 2.37 times more volatile than Nordea Invest Aktier. It trades about -0.02 of its potential returns per unit of risk. Nordea Invest Aktier is currently generating about -0.15 per unit of risk. If you would invest 3,560 in Embla Medical hf on September 25, 2024 and sell it today you would lose (30.00) from holding Embla Medical hf or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Embla Medical hf vs. Nordea Invest Aktier
Performance |
| Timeline |
| Embla Medical hf |
| Nordea Invest Aktier |
Embla Medical and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embla Medical and Nordea Invest
The main advantage of trading using opposite Embla Medical and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embla Medical 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.| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical vs. AP Mller |
| Nordea Invest vs. Hvidbjerg Bank | Nordea Invest vs. Lollands Bank | Nordea Invest vs. Embla Medical hf | Nordea Invest vs. Alefarm Brewing 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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