Correlation Between Jutal Offshore and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jutal Offshore and Nordic Semiconductor 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 Jutal Offshore and Nordic Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jutal Offshore Oil and Nordic Semiconductor ASA, you can compare the effects of market volatilities on Jutal Offshore and Nordic Semiconductor 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 Jutal Offshore with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Nordic Semiconductor.
Diversification Opportunities for Jutal Offshore and Nordic Semiconductor
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jutal and Nordic is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and Jutal Offshore 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 Jutal Offshore Oil are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between Jutal Offshore and Nordic Semiconductor
Assuming the 90 days horizon Jutal Offshore Oil is expected to generate 0.77 times more return on investment than Nordic Semiconductor. However, Jutal Offshore Oil is 1.3 times less risky than Nordic Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.0 per unit of risk. If you would invest 2,332 in Jutal Offshore Oil on August 31, 2024 and sell it today you would lose (422.00) from holding Jutal Offshore Oil or give up 18.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jutal Offshore Oil vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| Jutal Offshore Oil |
| Nordic Semiconductor ASA |
Jutal Offshore and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jutal Offshore and Nordic Semiconductor
The main advantage of trading using opposite Jutal Offshore and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore position performs unexpectedly, Nordic Semiconductor 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 Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| Jutal Offshore vs. China Aircraft Leasing | Jutal Offshore vs. Iridium Communications | Jutal Offshore vs. Nextplat Corp | Jutal Offshore vs. Sphere Entertainment Co |
| Nordic Semiconductor vs. Power Integrations | Nordic Semiconductor vs. MACOM Technology Solutions | Nordic Semiconductor vs. Intchains Group Limited | Nordic Semiconductor vs. Vishay Intertechnology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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