Correlation Between Nordic Asia and Klimator
Can any of the company-specific risk be diversified away by investing in both Nordic Asia and Klimator 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 Asia and Klimator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Asia Investment and Klimator AB, you can compare the effects of market volatilities on Nordic Asia and Klimator 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 Asia with a short position of Klimator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Asia and Klimator.
Diversification Opportunities for Nordic Asia and Klimator
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordic and Klimator is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Asia Investment and Klimator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klimator AB and Nordic Asia 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 Asia Investment are associated (or correlated) with Klimator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klimator AB has no effect on the direction of Nordic Asia i.e., Nordic Asia and Klimator go up and down completely randomly.
Pair Corralation between Nordic Asia and Klimator
Assuming the 90 days trading horizon Nordic Asia Investment is expected to generate 1.07 times more return on investment than Klimator. However, Nordic Asia is 1.07 times more volatile than Klimator AB. It trades about 0.05 of its potential returns per unit of risk. Klimator AB is currently generating about -0.01 per unit of risk. If you would invest 282.00 in Nordic Asia Investment on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Nordic Asia Investment or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nordic Asia Investment vs. Klimator AB
Performance |
| Timeline |
| Nordic Asia Investment |
| Klimator AB |
Nordic Asia and Klimator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Asia and Klimator
The main advantage of trading using opposite Nordic Asia and Klimator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Asia position performs unexpectedly, Klimator 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 Klimator will offset losses from the drop in Klimator's long position.| Nordic Asia vs. TF Bank AB | Nordic Asia vs. Beowulf Mining PLC | Nordic Asia vs. Indutrade AB | Nordic Asia vs. FormPipe Software AB |
| Klimator vs. White Pearl Technology | Klimator vs. New Nordic Healthbrands | Klimator vs. Qleanair Holding AB | Klimator vs. JLT Mobile Computers |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |