Correlation Between Nordea Bank and Nordea Invest
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By analyzing existing cross correlation between Nordea Bank Abp and Nordea Invest Global, you can compare the effects of market volatilities on Nordea Bank and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Nordea Invest.
Diversification Opportunities for Nordea Bank and Nordea Invest
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordea and Nordea is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of Nordea Bank i.e., Nordea Bank and Nordea Invest go up and down completely randomly.
Pair Corralation between Nordea Bank and Nordea Invest
Assuming the 90 days trading horizon Nordea Bank Abp is expected to generate 1.91 times more return on investment than Nordea Invest. However, Nordea Bank is 1.91 times more volatile than Nordea Invest Global. It trades about -0.14 of its potential returns per unit of risk. Nordea Invest Global is currently generating about -0.34 per unit of risk. If you would invest 7,924 in Nordea Bank Abp on September 25, 2024 and sell it today you would lose (260.00) from holding Nordea Bank Abp or give up 3.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nordea Bank Abp vs. Nordea Invest Global
Performance |
Timeline |
Nordea Bank Abp |
Nordea Invest Global |
Nordea Bank and Nordea Invest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nordea Bank and Nordea Invest
The main advantage of trading using opposite Nordea Bank and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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