Correlation Between Nordea Bank and Movinn AS
Can any of the company-specific risk be diversified away by investing in both Nordea Bank and Movinn AS 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 Nordea Bank and Movinn AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea Bank Abp and Movinn AS, you can compare the effects of market volatilities on Nordea Bank and Movinn AS 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 Movinn AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Movinn AS.
Diversification Opportunities for Nordea Bank and Movinn AS
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordea and Movinn is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Movinn AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movinn AS 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 Movinn AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movinn AS has no effect on the direction of Nordea Bank i.e., Nordea Bank and Movinn AS go up and down completely randomly.
Pair Corralation between Nordea Bank and Movinn AS
Assuming the 90 days trading horizon Nordea Bank is expected to generate 20.62 times less return on investment than Movinn AS. But when comparing it to its historical volatility, Nordea Bank Abp is 2.36 times less risky than Movinn AS. It trades about 0.01 of its potential returns per unit of risk. Movinn AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Movinn AS on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Movinn AS or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. Movinn AS
Performance |
| Timeline |
| Nordea Bank Abp |
| Movinn AS |
Nordea Bank and Movinn AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Movinn AS
The main advantage of trading using opposite Nordea Bank and Movinn AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Movinn AS 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 Movinn AS will offset losses from the drop in Movinn AS'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 |
| Movinn AS vs. Cessatech AS | Movinn AS vs. NTG Nordic Transport | Movinn AS vs. Nordinvestments AS | Movinn AS vs. Ringkjoebing Landbobank 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |