Correlation Between Laan Spar and Nordea Invest
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By analyzing existing cross correlation between Laan Spar Bank and Nordea Invest Aktier, 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
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Laan and Nordea is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Laan Spar Bank and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier 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 Aktier 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 generate 1.26 times more return on investment than Nordea Invest. However, Laan Spar is 1.26 times more volatile than Nordea Invest Aktier. It trades about 0.02 of its potential returns per unit of risk. Nordea Invest Aktier is currently generating about 0.03 per unit of risk. If you would invest 63,030 in Laan Spar Bank on October 13, 2024 and sell it today you would earn a total of 6,970 from holding Laan Spar Bank or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.22% |
| Values | Daily Returns |
Laan Spar Bank vs. Nordea Invest Aktier
Performance |
| Timeline |
| Laan Spar Bank |
| Nordea Invest Aktier |
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. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken AS |
| Nordea Invest vs. Laan Spar Bank | Nordea Invest vs. Djurslands Bank | Nordea Invest vs. Strategic Investments AS | Nordea Invest vs. Alefarm Brewing 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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