Correlation Between Nordic Semiconductor and GLOBUS MEDICAL-A
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A 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 GLOBUS MEDICAL A, you can compare the effects of market volatilities on Nordic Semiconductor and GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and GLOBUS MEDICAL-A.
Diversification Opportunities for Nordic Semiconductor and GLOBUS MEDICAL-A
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and GLOBUS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A 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 GLOBUS MEDICAL-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and GLOBUS MEDICAL-A go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and GLOBUS MEDICAL-A
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the GLOBUS MEDICAL-A. In addition to that, Nordic Semiconductor is 1.88 times more volatile than GLOBUS MEDICAL A. It trades about -0.01 of its total potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.03 per unit of volatility. If you would invest 6,650 in GLOBUS MEDICAL A on October 11, 2024 and sell it today you would earn a total of 1,900 from holding GLOBUS MEDICAL A or generate 28.57% 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. GLOBUS MEDICAL A
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| GLOBUS MEDICAL A |
Nordic Semiconductor and GLOBUS MEDICAL-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and GLOBUS MEDICAL-A
The main advantage of trading using opposite Nordic Semiconductor and GLOBUS MEDICAL-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A will offset losses from the drop in GLOBUS MEDICAL-A's long position.| Nordic Semiconductor vs. Clean Energy Fuels | Nordic Semiconductor vs. Ultra Clean Holdings | Nordic Semiconductor vs. Major Drilling Group | Nordic Semiconductor vs. ZURICH INSURANCE GROUP |
| GLOBUS MEDICAL-A vs. Plastic Omnium | GLOBUS MEDICAL-A vs. The Yokohama Rubber | GLOBUS MEDICAL-A vs. Materialise NV | GLOBUS MEDICAL-A vs. TOREX SEMICONDUCTOR LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |