Correlation Between Nordea Bank and BankInv GloAkColum
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By analyzing existing cross correlation between Nordea Bank Abp and BankInv GloAkColum Threadndl, you can compare the effects of market volatilities on Nordea Bank and BankInv GloAkColum 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 Nordea Bank with a short position of BankInv GloAkColum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and BankInv GloAkColum.
Diversification Opportunities for Nordea Bank and BankInv GloAkColum
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and BankInv is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and BankInv GloAkColum Threadndl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInv GloAkColum and Nordea Bank 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 Nordea Bank Abp are associated (or correlated) with BankInv GloAkColum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInv GloAkColum has no effect on the direction of Nordea Bank i.e., Nordea Bank and BankInv GloAkColum go up and down completely randomly.
Pair Corralation between Nordea Bank and BankInv GloAkColum
Assuming the 90 days trading horizon Nordea Bank is expected to generate 32.39 times less return on investment than BankInv GloAkColum. In addition to that, Nordea Bank is 1.26 times more volatile than BankInv GloAkColum Threadndl. It trades about 0.01 of its total potential returns per unit of risk. BankInv GloAkColum Threadndl is currently generating about 0.27 per unit of volatility. If you would invest 13,785 in BankInv GloAkColum Threadndl on September 1, 2024 and sell it today you would earn a total of 475.00 from holding BankInv GloAkColum Threadndl or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Nordea Bank Abp vs. BankInv GloAkColum Threadndl
Performance |
| Timeline |
| Nordea Bank Abp |
| BankInv GloAkColum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Nordea Bank and BankInv GloAkColum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and BankInv GloAkColum
The main advantage of trading using opposite Nordea Bank and BankInv GloAkColum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, BankInv GloAkColum 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 BankInv GloAkColum will offset losses from the drop in BankInv GloAkColum's long position.| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS AS |
| BankInv GloAkColum vs. Novo Nordisk AS | BankInv GloAkColum vs. Nordea Bank Abp | BankInv GloAkColum vs. DSV Panalpina AS | BankInv GloAkColum vs. AP Mller |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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