Correlation Between Nordic Semiconductor and CHRYSALIS INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD, you can compare the effects of market volatilities on Nordic Semiconductor and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and CHRYSALIS INVESTMENTS.
Diversification Opportunities for Nordic Semiconductor and CHRYSALIS INVESTMENTS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and CHRYSALIS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and CHRYSALIS INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHRYSALIS INVESTMENTS LTD has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and CHRYSALIS INVESTMENTS go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and CHRYSALIS INVESTMENTS
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the CHRYSALIS INVESTMENTS. In addition to that, Nordic Semiconductor is 1.35 times more volatile than CHRYSALIS INVESTMENTS LTD. It trades about -0.01 of its total potential returns per unit of risk. CHRYSALIS INVESTMENTS LTD is currently generating about 0.03 per unit of volatility. If you would invest 100.00 in CHRYSALIS INVESTMENTS LTD on October 18, 2024 and sell it today you would earn a total of 17.00 from holding CHRYSALIS INVESTMENTS LTD or generate 17.0% 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. CHRYSALIS INVESTMENTS LTD
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| CHRYSALIS INVESTMENTS LTD |
Nordic Semiconductor and CHRYSALIS INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and CHRYSALIS INVESTMENTS
The main advantage of trading using opposite Nordic Semiconductor and CHRYSALIS INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS will offset losses from the drop in CHRYSALIS INVESTMENTS's long position.| Nordic Semiconductor vs. GALENA MINING LTD | Nordic Semiconductor vs. Endeavour Mining PLC | Nordic Semiconductor vs. MCEWEN MINING INC | Nordic Semiconductor vs. Hemisphere Energy Corp |
| CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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