Correlation Between Nordea Bank and Fodelia
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By analyzing existing cross correlation between Nordea Bank Abp and Fodelia, you can compare the effects of market volatilities on Nordea Bank and Fodelia 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 Fodelia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Fodelia.
Diversification Opportunities for Nordea Bank and Fodelia
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordea and Fodelia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Fodelia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fodelia 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 Fodelia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fodelia has no effect on the direction of Nordea Bank i.e., Nordea Bank and Fodelia go up and down completely randomly.
Pair Corralation between Nordea Bank and Fodelia
Assuming the 90 days trading horizon Nordea Bank is expected to generate 1.7 times less return on investment than Fodelia. But when comparing it to its historical volatility, Nordea Bank Abp is 1.74 times less risky than Fodelia. It trades about 0.33 of its potential returns per unit of risk. Fodelia is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 614.00 in Fodelia on November 28, 2024 and sell it today you would earn a total of 90.00 from holding Fodelia or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. Fodelia
Performance |
| Timeline |
| Nordea Bank Abp |
| Fodelia |
Nordea Bank and Fodelia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Fodelia
The main advantage of trading using opposite Nordea Bank and Fodelia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Fodelia 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 Fodelia will offset losses from the drop in Fodelia's 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 |
| Fodelia vs. Sotkamo Silver AB | Fodelia vs. SSH Communications Security | Fodelia vs. Aiforia Technologies Oyj | Fodelia vs. Aktia Bank Abp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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