Correlation Between Nordic Semiconductor and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Nordic Semiconductor and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and ANTA SPORTS.
Diversification Opportunities for Nordic Semiconductor and ANTA SPORTS
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and ANTA is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and ANTA SPORTS
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the ANTA SPORTS. In addition to that, Nordic Semiconductor is 1.05 times more volatile than ANTA SPORTS PRODUCT. It trades about -0.28 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.25 per unit of volatility. If you would invest 1,050 in ANTA SPORTS PRODUCT on August 29, 2024 and sell it today you would lose (113.00) from holding ANTA SPORTS PRODUCT or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| ANTA SPORTS PRODUCT |
Nordic Semiconductor and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and ANTA SPORTS
The main advantage of trading using opposite Nordic Semiconductor and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Nordic Semiconductor vs. Siamgas And Petrochemicals | Nordic Semiconductor vs. TYSON FOODS A | Nordic Semiconductor vs. JJ SNACK FOODS | Nordic Semiconductor vs. ADRIATIC METALS LS 013355 |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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