Correlation Between Nordea Bank and Aiforia Technologies
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By analyzing existing cross correlation between Nordea Bank Abp and Aiforia Technologies Oyj, you can compare the effects of market volatilities on Nordea Bank and Aiforia Technologies 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 Aiforia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Aiforia Technologies.
Diversification Opportunities for Nordea Bank and Aiforia Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordea and Aiforia is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Aiforia Technologies Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiforia Technologies Oyj 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 Aiforia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiforia Technologies Oyj has no effect on the direction of Nordea Bank i.e., Nordea Bank and Aiforia Technologies go up and down completely randomly.
Pair Corralation between Nordea Bank and Aiforia Technologies
Assuming the 90 days trading horizon Nordea Bank Abp is expected to generate 0.55 times more return on investment than Aiforia Technologies. However, Nordea Bank Abp is 1.83 times less risky than Aiforia Technologies. It trades about -0.09 of its potential returns per unit of risk. Aiforia Technologies Oyj is currently generating about -0.37 per unit of risk. If you would invest 1,090 in Nordea Bank Abp on August 24, 2024 and sell it today you would lose (25.00) from holding Nordea Bank Abp or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordea Bank Abp vs. Aiforia Technologies Oyj
Performance |
| Timeline |
| Nordea Bank Abp |
| Aiforia Technologies Oyj |
Nordea Bank and Aiforia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Aiforia Technologies
The main advantage of trading using opposite Nordea Bank and Aiforia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Aiforia Technologies 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 Aiforia Technologies will offset losses from the drop in Aiforia Technologies' long position.| Nordea Bank vs. Sampo Oyj A | Nordea Bank vs. Fortum Oyj | Nordea Bank vs. UPM Kymmene Oyj | Nordea Bank vs. Neste Oil Oyj |
| Aiforia Technologies vs. Kamux Suomi Oy | Aiforia Technologies vs. Harvia Oyj | Aiforia Technologies vs. Qt Group Oyj | Aiforia Technologies vs. Tecnotree Oyj |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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