Correlation Between Maj Invest and Newcap Holding
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By analyzing existing cross correlation between Maj Invest Glob and Newcap Holding AS, you can compare the effects of market volatilities on Maj Invest and Newcap Holding 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 Maj Invest with a short position of Newcap Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Newcap Holding.
Diversification Opportunities for Maj Invest and Newcap Holding
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maj and Newcap is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Glob and Newcap Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcap Holding AS and Maj Invest 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 Maj Invest Glob are associated (or correlated) with Newcap Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcap Holding AS has no effect on the direction of Maj Invest i.e., Maj Invest and Newcap Holding go up and down completely randomly.
Pair Corralation between Maj Invest and Newcap Holding
Assuming the 90 days trading horizon Maj Invest is expected to generate 9.04 times less return on investment than Newcap Holding. But when comparing it to its historical volatility, Maj Invest Glob is 21.96 times less risky than Newcap Holding. It trades about 0.09 of its potential returns per unit of risk. Newcap Holding AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Newcap Holding AS on September 3, 2024 and sell it today you would lose (8.20) from holding Newcap Holding AS or give up 45.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Glob vs. Newcap Holding AS
Performance |
| Timeline |
| Maj Invest Glob |
| Newcap Holding AS |
Maj Invest and Newcap Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Newcap Holding
The main advantage of trading using opposite Maj Invest and Newcap Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, Newcap Holding 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 Newcap Holding will offset losses from the drop in Newcap Holding's long position.| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
| Newcap Holding vs. SKAKO AS | Newcap Holding vs. Lollands Bank | Newcap Holding vs. Scandinavian Brake Systems | Newcap Holding vs. Rovsing 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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