Correlation Between Flexion Mobile and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Nordea Bank 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 Flexion Mobile and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexion Mobile PLC and Nordea Bank Abp, you can compare the effects of market volatilities on Flexion Mobile and Nordea Bank 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 Flexion Mobile with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Nordea Bank.
Diversification Opportunities for Flexion Mobile and Nordea Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flexion and Nordea is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Flexion Mobile 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 Flexion Mobile PLC are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Nordea Bank go up and down completely randomly.
Pair Corralation between Flexion Mobile and Nordea Bank
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Nordea Bank. In addition to that, Flexion Mobile is 2.1 times more volatile than Nordea Bank Abp. It trades about -0.03 of its total potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.04 per unit of volatility. If you would invest 11,960 in Nordea Bank Abp on August 30, 2024 and sell it today you would earn a total of 230.00 from holding Nordea Bank Abp or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Nordea Bank Abp
Performance |
| Timeline |
| Flexion Mobile PLC |
| Nordea Bank Abp |
Flexion Mobile and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Nordea Bank
The main advantage of trading using opposite Flexion Mobile and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Nordea Bank 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 Bank will offset losses from the drop in Nordea Bank's long position.| Flexion Mobile vs. Train Alliance Sweden | Flexion Mobile vs. Arctic Blue Beverages | Flexion Mobile vs. Lundin Mining | Flexion Mobile vs. Filo Mining Corp |
| Nordea Bank vs. Soder Sportfiske AB | Nordea Bank vs. Invisio Communications AB | Nordea Bank vs. Redsense Medical AB | Nordea Bank vs. USWE Sports AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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