Correlation Between Helgeland Sparebank and Nordic Technology
Can any of the company-specific risk be diversified away by investing in both Helgeland Sparebank and Nordic Technology 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 Helgeland Sparebank and Nordic Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helgeland Sparebank and Nordic Technology Group, you can compare the effects of market volatilities on Helgeland Sparebank and Nordic Technology 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 Helgeland Sparebank with a short position of Nordic Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helgeland Sparebank and Nordic Technology.
Diversification Opportunities for Helgeland Sparebank and Nordic Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Helgeland and Nordic is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Helgeland Sparebank and Nordic Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Technology and Helgeland Sparebank 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 Helgeland Sparebank are associated (or correlated) with Nordic Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Technology has no effect on the direction of Helgeland Sparebank i.e., Helgeland Sparebank and Nordic Technology go up and down completely randomly.
Pair Corralation between Helgeland Sparebank and Nordic Technology
Assuming the 90 days trading horizon Helgeland Sparebank is expected to under-perform the Nordic Technology. In addition to that, Helgeland Sparebank is 2.88 times more volatile than Nordic Technology Group. It trades about -0.08 of its total potential returns per unit of risk. Nordic Technology Group is currently generating about -0.13 per unit of volatility. If you would invest 274.00 in Nordic Technology Group on September 1, 2024 and sell it today you would lose (4.00) from holding Nordic Technology Group or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helgeland Sparebank vs. Nordic Technology Group
Performance |
| Timeline |
| Helgeland Sparebank |
| Nordic Technology |
Helgeland Sparebank and Nordic Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helgeland Sparebank and Nordic Technology
The main advantage of trading using opposite Helgeland Sparebank and Nordic Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helgeland Sparebank position performs unexpectedly, Nordic Technology 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 Nordic Technology will offset losses from the drop in Nordic Technology's long position.| Helgeland Sparebank vs. DnB ASA | Helgeland Sparebank vs. Gjensidige Forsikring ASA | Helgeland Sparebank vs. Orkla ASA | Helgeland Sparebank vs. Telenor ASA |
| Nordic Technology vs. Grieg Seafood ASA | Nordic Technology vs. Aasen Sparebank | Nordic Technology vs. Dolphin Drilling AS | Nordic Technology vs. Helgeland Sparebank |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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