Correlation Between SCANDMEDICAL SOLDK-040 and NORDSTROM
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 and NORDSTROM 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 SCANDMEDICAL SOLDK-040 and NORDSTROM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and NORDSTROM Dusseldorf, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 and NORDSTROM 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 SCANDMEDICAL SOLDK-040 with a short position of NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and NORDSTROM.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and NORDSTROM
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDMEDICAL and NORDSTROM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and NORDSTROM Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM Dusseldorf and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM Dusseldorf has no effect on the direction of SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and NORDSTROM go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and NORDSTROM
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to under-perform the NORDSTROM. In addition to that, SCANDMEDICAL SOLDK-040 is 1.22 times more volatile than NORDSTROM Dusseldorf. It trades about 0.0 of its total potential returns per unit of risk. NORDSTROM Dusseldorf is currently generating about 0.08 per unit of volatility. If you would invest 1,349 in NORDSTROM Dusseldorf on September 2, 2024 and sell it today you would earn a total of 774.00 from holding NORDSTROM Dusseldorf or generate 57.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. NORDSTROM Dusseldorf
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| NORDSTROM Dusseldorf |
SCANDMEDICAL SOLDK-040 and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and NORDSTROM
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM's long position.| SCANDMEDICAL SOLDK-040 vs. MGIC INVESTMENT | SCANDMEDICAL SOLDK-040 vs. SLR Investment Corp | SCANDMEDICAL SOLDK-040 vs. Chuangs China Investments | SCANDMEDICAL SOLDK-040 vs. New Residential Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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