Correlation Between Helgeland Sparebank and Nordic Unmanned
Can any of the company-specific risk be diversified away by investing in both Helgeland Sparebank and Nordic Unmanned 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 Unmanned 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 Unmanned As, you can compare the effects of market volatilities on Helgeland Sparebank and Nordic Unmanned 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 Unmanned. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helgeland Sparebank and Nordic Unmanned.
Diversification Opportunities for Helgeland Sparebank and Nordic Unmanned
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Helgeland and Nordic is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Helgeland Sparebank and Nordic Unmanned As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Unmanned As 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 Unmanned. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Unmanned As has no effect on the direction of Helgeland Sparebank i.e., Helgeland Sparebank and Nordic Unmanned go up and down completely randomly.
Pair Corralation between Helgeland Sparebank and Nordic Unmanned
Assuming the 90 days trading horizon Helgeland Sparebank is expected to generate 0.07 times more return on investment than Nordic Unmanned. However, Helgeland Sparebank is 14.02 times less risky than Nordic Unmanned. It trades about -0.07 of its potential returns per unit of risk. Nordic Unmanned As is currently generating about -0.01 per unit of risk. If you would invest 14,398 in Helgeland Sparebank on September 5, 2024 and sell it today you would lose (338.00) from holding Helgeland Sparebank or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helgeland Sparebank vs. Nordic Unmanned As
Performance |
| Timeline |
| Helgeland Sparebank |
| Nordic Unmanned As |
Helgeland Sparebank and Nordic Unmanned Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helgeland Sparebank and Nordic Unmanned
The main advantage of trading using opposite Helgeland Sparebank and Nordic Unmanned positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helgeland Sparebank position performs unexpectedly, Nordic Unmanned 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 Unmanned will offset losses from the drop in Nordic Unmanned's long position.| Helgeland Sparebank vs. Holand og Setskog | Helgeland Sparebank vs. Elkem ASA | Helgeland Sparebank vs. Integrated Wind Solutions | Helgeland Sparebank vs. Vow ASA |
| Nordic Unmanned vs. Sea1 Offshore | Nordic Unmanned vs. Nordic Mining ASA | Nordic Unmanned vs. Instabank ASA | Nordic Unmanned vs. Norwegian Air Shuttle |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |