Correlation Between Nordic Semiconductor and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and MAVEN WIRELESS 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Nordic Semiconductor and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and MAVEN WIRELESS.
Diversification Opportunities for Nordic Semiconductor and MAVEN WIRELESS
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and MAVEN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and MAVEN WIRELESS
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 1.28 times more return on investment than MAVEN WIRELESS. However, Nordic Semiconductor is 1.28 times more volatile than MAVEN WIRELESS SWEDEN. It trades about -0.01 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about -0.01 per unit of risk. If you would invest 1,451 in Nordic Semiconductor ASA on October 11, 2024 and sell it today you would lose (564.00) from holding Nordic Semiconductor ASA or give up 38.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| MAVEN WIRELESS SWEDEN |
Nordic Semiconductor and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and MAVEN WIRELESS
The main advantage of trading using opposite Nordic Semiconductor and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| Nordic Semiconductor vs. HANOVER INSURANCE | Nordic Semiconductor vs. Ribbon Communications | Nordic Semiconductor vs. Reinsurance Group of | Nordic Semiconductor vs. Shenandoah Telecommunications |
| MAVEN WIRELESS vs. LANDSEA GREEN MANAGEMENT | MAVEN WIRELESS vs. Tower Semiconductor | MAVEN WIRELESS vs. Taiwan Semiconductor Manufacturing | MAVEN WIRELESS vs. Nordic Semiconductor ASA |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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