Correlation Between Integrated Wind and Nordhealth
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Nordhealth 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 Integrated Wind and Nordhealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Wind Solutions and Nordhealth AS, you can compare the effects of market volatilities on Integrated Wind and Nordhealth 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 Integrated Wind with a short position of Nordhealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Nordhealth.
Diversification Opportunities for Integrated Wind and Nordhealth
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integrated and Nordhealth is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Nordhealth AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordhealth AS and Integrated Wind 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 Integrated Wind Solutions are associated (or correlated) with Nordhealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordhealth AS has no effect on the direction of Integrated Wind i.e., Integrated Wind and Nordhealth go up and down completely randomly.
Pair Corralation between Integrated Wind and Nordhealth
Assuming the 90 days trading horizon Integrated Wind is expected to generate 2.93 times less return on investment than Nordhealth. But when comparing it to its historical volatility, Integrated Wind Solutions is 1.42 times less risky than Nordhealth. It trades about 0.03 of its potential returns per unit of risk. Nordhealth AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,680 in Nordhealth AS on August 29, 2024 and sell it today you would earn a total of 1,620 from holding Nordhealth AS or generate 60.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Nordhealth AS
Performance |
| Timeline |
| Integrated Wind Solutions |
| Nordhealth AS |
Integrated Wind and Nordhealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Nordhealth
The main advantage of trading using opposite Integrated Wind and Nordhealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Nordhealth 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 Nordhealth will offset losses from the drop in Nordhealth's long position.| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo AS |
| Nordhealth vs. Carasent ASA | Nordhealth vs. Elkem ASA | Nordhealth vs. DNB NOR KAPFORV | Nordhealth vs. Integrated Wind Solutions |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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