Correlation Between Nordic Semiconductor and EAT WELL
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and EAT WELL 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 EAT WELL 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 EAT WELL INVESTMENT, you can compare the effects of market volatilities on Nordic Semiconductor and EAT WELL 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 EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and EAT WELL.
Diversification Opportunities for Nordic Semiconductor and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT 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 EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and EAT WELL go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and EAT WELL
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the EAT WELL. In addition to that, Nordic Semiconductor is 1.26 times more volatile than EAT WELL INVESTMENT. It trades about -0.01 of its total potential returns per unit of risk. EAT WELL INVESTMENT is currently generating about 0.0 per unit of volatility. If you would invest 14.00 in EAT WELL INVESTMENT on October 18, 2024 and sell it today you would lose (3.00) from holding EAT WELL INVESTMENT or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| EAT WELL INVESTMENT |
Nordic Semiconductor and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and EAT WELL
The main advantage of trading using opposite Nordic Semiconductor and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL'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 |
| EAT WELL vs. NEW MILLENNIUM IRON | EAT WELL vs. CALTAGIRONE EDITORE | EAT WELL vs. Endeavour Mining PLC | EAT WELL vs. ANGANG STEEL H |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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