Correlation Between Nordic Semiconductor and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and WAGNERS HOLDING 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 Nordic Semiconductor and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Nordic Semiconductor and WAGNERS 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 Nordic Semiconductor with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and WAGNERS HOLDING.
Diversification Opportunities for Nordic Semiconductor and WAGNERS HOLDING
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and WAGNERS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and Nordic Semiconductor 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 Nordic Semiconductor ASA are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and WAGNERS HOLDING
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.72 times more return on investment than WAGNERS HOLDING. However, Nordic Semiconductor ASA is 1.38 times less risky than WAGNERS HOLDING. It trades about 0.02 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about -0.04 per unit of risk. If you would invest 843.00 in Nordic Semiconductor ASA on September 30, 2024 and sell it today you would earn a total of 4.00 from holding Nordic Semiconductor ASA or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| WAGNERS HOLDING LTD |
Nordic Semiconductor and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and WAGNERS HOLDING
The main advantage of trading using opposite Nordic Semiconductor and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, WAGNERS 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| Nordic Semiconductor vs. Broadcom | Nordic Semiconductor vs. Texas Instruments Incorporated | Nordic Semiconductor vs. QUALCOMM Incorporated |
| WAGNERS HOLDING vs. MCEWEN MINING INC | WAGNERS HOLDING vs. Nordic Semiconductor ASA | WAGNERS HOLDING vs. Tower Semiconductor | WAGNERS HOLDING vs. ELMOS SEMICONDUCTOR |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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