Correlation Between High Coast and Nordea Bank
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By analyzing existing cross correlation between High Coast Distillery and Nordea Bank Abp, you can compare the effects of market volatilities on High Coast 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 High Coast with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Coast and Nordea Bank.
Diversification Opportunities for High Coast and Nordea Bank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between High and Nordea is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding High Coast Distillery 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 High Coast 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 High Coast Distillery 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 High Coast i.e., High Coast and Nordea Bank go up and down completely randomly.
Pair Corralation between High Coast and Nordea Bank
Assuming the 90 days trading horizon High Coast Distillery is expected to generate 4.14 times more return on investment than Nordea Bank. However, High Coast is 4.14 times more volatile than Nordea Bank Abp. It trades about 0.03 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about -0.23 per unit of risk. If you would invest 4,440 in High Coast Distillery on September 3, 2024 and sell it today you would earn a total of 40.00 from holding High Coast Distillery or generate 0.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
High Coast Distillery vs. Nordea Bank Abp
Performance |
Timeline |
High Coast Distillery |
Nordea Bank Abp |
High Coast and Nordea Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with High Coast and Nordea Bank
The main advantage of trading using opposite High Coast and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Coast 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.High Coast vs. Train Alliance Sweden | High Coast vs. COOR Service Management | High Coast vs. Lohilo Foods AB | High Coast vs. NetJobs Group AB |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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