Correlation Between Norwegian Air and Integrated Wind
Can any of the company-specific risk be diversified away by investing in both Norwegian Air and Integrated Wind 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 Norwegian Air and Integrated Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Norwegian Air Shuttle and Integrated Wind Solutions, you can compare the effects of market volatilities on Norwegian Air and Integrated Wind 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 Norwegian Air with a short position of Integrated Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norwegian Air and Integrated Wind.
Diversification Opportunities for Norwegian Air and Integrated Wind
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Norwegian and Integrated is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and Integrated Wind Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Wind Solutions and Norwegian Air 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 Norwegian Air Shuttle are associated (or correlated) with Integrated Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Wind Solutions has no effect on the direction of Norwegian Air i.e., Norwegian Air and Integrated Wind go up and down completely randomly.
Pair Corralation between Norwegian Air and Integrated Wind
Assuming the 90 days trading horizon Norwegian Air Shuttle is expected to generate 0.9 times more return on investment than Integrated Wind. However, Norwegian Air Shuttle is 1.12 times less risky than Integrated Wind. It trades about 0.02 of its potential returns per unit of risk. Integrated Wind Solutions is currently generating about -0.21 per unit of risk. If you would invest 1,118 in Norwegian Air Shuttle on November 9, 2024 and sell it today you would earn a total of 3.00 from holding Norwegian Air Shuttle or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norwegian Air Shuttle vs. Integrated Wind Solutions
Performance |
| Timeline |
| Norwegian Air Shuttle |
| Integrated Wind Solutions |
Norwegian Air and Integrated Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norwegian Air and Integrated Wind
The main advantage of trading using opposite Norwegian Air and Integrated Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norwegian Air position performs unexpectedly, Integrated Wind 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 Integrated Wind will offset losses from the drop in Integrated Wind's long position.| Norwegian Air vs. Danske Bank AS | Norwegian Air vs. Kongsberg Automotive Holding | Norwegian Air vs. Nel ASA |
| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo AS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |