Correlation Between Nordic Semiconductor and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Nordic Semiconductor and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Jacquet Metal.
Diversification Opportunities for Nordic Semiconductor and Jacquet Metal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordic and Jacquet is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Jacquet Metal go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Jacquet Metal
Assuming the 90 days horizon Nordic Semiconductor is expected to generate 1.81 times less return on investment than Jacquet Metal. In addition to that, Nordic Semiconductor is 1.12 times more volatile than Jacquet Metal Service. It trades about 0.09 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.18 per unit of volatility. If you would invest 1,644 in Jacquet Metal Service on October 12, 2024 and sell it today you would earn a total of 86.00 from holding Jacquet Metal Service or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Jacquet Metal Service
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Jacquet Metal Service |
Nordic Semiconductor and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Jacquet Metal
The main advantage of trading using opposite Nordic Semiconductor and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Nordic Semiconductor vs. QINGCI GAMES INC | Nordic Semiconductor vs. PLAYMATES TOYS | Nordic Semiconductor vs. NIGHTINGALE HEALTH EO | Nordic Semiconductor vs. YOOMA WELLNESS INC |
| Jacquet Metal vs. Taiwan Semiconductor Manufacturing | Jacquet Metal vs. Nordic Semiconductor ASA | Jacquet Metal vs. Nomad Foods | Jacquet Metal vs. NAKED WINES PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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