Correlation Between Maj Invest and North Media
Can any of the company-specific risk be diversified away by investing in both Maj Invest and North Media 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 Maj Invest and North Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Pension and North Media AS, you can compare the effects of market volatilities on Maj Invest and North Media 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 North Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and North Media.
Diversification Opportunities for Maj Invest and North Media
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maj and North is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media 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 Pension are associated (or correlated) with North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of Maj Invest i.e., Maj Invest and North Media go up and down completely randomly.
Pair Corralation between Maj Invest and North Media
Assuming the 90 days trading horizon Maj Invest Pension is expected to generate 0.27 times more return on investment than North Media. However, Maj Invest Pension is 3.64 times less risky than North Media. It trades about 0.15 of its potential returns per unit of risk. North Media AS is currently generating about -0.16 per unit of risk. If you would invest 12,422 in Maj Invest Pension on September 3, 2024 and sell it today you would earn a total of 412.00 from holding Maj Invest Pension or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maj Invest Pension vs. North Media AS
Performance |
| Timeline |
| Maj Invest Pension |
| North Media AS |
Maj Invest and North Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and North Media
The main advantage of trading using opposite Maj Invest and North Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, North Media 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 North Media will offset losses from the drop in North Media's long position.| Maj Invest vs. North Media AS | Maj Invest vs. TROPHY GAMES Development | Maj Invest vs. Cessatech AS | Maj Invest vs. Spar Nord Bank |
| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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