Correlation Between Nordea Bank and Maj Invest
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By analyzing existing cross correlation between Nordea Bank Abp and Maj Invest Glob, you can compare the effects of market volatilities on Nordea Bank and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Maj Invest.
Diversification Opportunities for Nordea Bank and Maj Invest
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordea and Maj is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Nordea Bank i.e., Nordea Bank and Maj Invest go up and down completely randomly.
Pair Corralation between Nordea Bank and Maj Invest
Assuming the 90 days trading horizon Nordea Bank Abp is expected to generate 0.7 times more return on investment than Maj Invest. However, Nordea Bank Abp is 1.43 times less risky than Maj Invest. It trades about 0.04 of its potential returns per unit of risk. Maj Invest Glob is currently generating about -0.17 per unit of risk. If you would invest 7,651 in Nordea Bank Abp on December 8, 2024 and sell it today you would earn a total of 2,187 from holding Nordea Bank Abp or generate 28.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.94% |
| Values | Daily Returns |
Nordea Bank Abp vs. Maj Invest Glob
Performance |
| Timeline |
| Nordea Bank Abp |
| Maj Invest Glob |
Nordea Bank and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Maj Invest
The main advantage of trading using opposite Nordea Bank and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Nordea Bank vs. Jyske Bank AS | ||
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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