Correlation Between Laan Spar and Nordea Invest
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By analyzing existing cross correlation between Laan Spar Bank and Nordea Invest Basis, you can compare the effects of market volatilities on Laan Spar and Nordea Invest 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 Laan Spar with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laan Spar and Nordea Invest.
Diversification Opportunities for Laan Spar and Nordea Invest
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Laan and Nordea is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis and Laan Spar 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 Laan Spar Bank are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of Laan Spar i.e., Laan Spar and Nordea Invest go up and down completely randomly.
Pair Corralation between Laan Spar and Nordea Invest
Assuming the 90 days trading horizon Laan Spar Bank is expected to under-perform the Nordea Invest. In addition to that, Laan Spar is 2.7 times more volatile than Nordea Invest Basis. It trades about -0.02 of its total potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.23 per unit of volatility. If you would invest 15,370 in Nordea Invest Basis on September 19, 2024 and sell it today you would earn a total of 325.00 from holding Nordea Invest Basis or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laan Spar Bank vs. Nordea Invest Basis
Performance |
| Timeline |
| Laan Spar Bank |
| Nordea Invest Basis |
Laan Spar and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laan Spar and Nordea Invest
The main advantage of trading using opposite Laan Spar and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laan Spar position performs unexpectedly, Nordea Invest 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 Invest will offset losses from the drop in Nordea Invest's long position.| Laan Spar vs. FLSmidth Co | Laan Spar vs. Danske Bank AS | Laan Spar vs. ISS AS | Laan Spar vs. DSV Panalpina AS |
| Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. Laan Spar Bank | Nordea Invest vs. Formuepleje Mix Medium | Nordea Invest vs. Nordinvestments AS |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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