Correlation Between Formuepleje Mix and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Formuepleje Mix 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 Formuepleje Mix and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Formuepleje Mix Medium and NTG Nordic Transport, you can compare the effects of market volatilities on Formuepleje Mix 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 Formuepleje Mix with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formuepleje Mix and NTG Nordic.
Diversification Opportunities for Formuepleje Mix and NTG Nordic
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Formuepleje and NTG is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Formuepleje Mix Medium 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 Formuepleje Mix 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 Formuepleje Mix Medium 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 Formuepleje Mix i.e., Formuepleje Mix and NTG Nordic go up and down completely randomly.
Pair Corralation between Formuepleje Mix and NTG Nordic
Assuming the 90 days trading horizon Formuepleje Mix Medium is expected to under-perform the NTG Nordic. But the stock apears to be less risky and, when comparing its historical volatility, Formuepleje Mix Medium is 2.45 times less risky than NTG Nordic. The stock trades about -0.11 of its potential returns per unit of risk. The NTG Nordic Transport is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 23,750 in NTG Nordic Transport on November 28, 2024 and sell it today you would earn a total of 950.00 from holding NTG Nordic Transport or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Formuepleje Mix Medium vs. NTG Nordic Transport
Performance |
| Timeline |
| Formuepleje Mix Medium |
| NTG Nordic Transport |
Formuepleje Mix and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formuepleje Mix and NTG Nordic
The main advantage of trading using opposite Formuepleje Mix and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formuepleje Mix 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.| Formuepleje Mix vs. Nordinvestments AS | Formuepleje Mix vs. Vestjysk Bank AS | Formuepleje Mix vs. Prime Office AS | Formuepleje Mix vs. Sydbank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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