Correlation Between Nordea Bank and HKFoods Oyj
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By analyzing existing cross correlation between Nordea Bank Abp and HKFoods Oyj A, you can compare the effects of market volatilities on Nordea Bank and HKFoods Oyj 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 HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and HKFoods Oyj.
Diversification Opportunities for Nordea Bank and HKFoods Oyj
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and HKFoods is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A 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 HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Nordea Bank i.e., Nordea Bank and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Nordea Bank and HKFoods Oyj
Assuming the 90 days trading horizon Nordea Bank is expected to generate 1.98 times less return on investment than HKFoods Oyj. But when comparing it to its historical volatility, Nordea Bank Abp is 2.19 times less risky than HKFoods Oyj. It trades about 0.05 of its potential returns per unit of risk. HKFoods Oyj A is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in HKFoods Oyj A on August 27, 2024 and sell it today you would earn a total of 10.00 from holding HKFoods Oyj A or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 40.69% |
| Values | Daily Returns |
Nordea Bank Abp vs. HKFoods Oyj A
Performance |
| Timeline |
| Nordea Bank Abp |
| HKFoods Oyj A |
Nordea Bank and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and HKFoods Oyj
The main advantage of trading using opposite Nordea Bank and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, HKFoods Oyj 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj'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 |
| HKFoods Oyj vs. Kamux Suomi Oy | HKFoods Oyj vs. Harvia Oyj | HKFoods Oyj vs. Qt Group Oyj | HKFoods Oyj 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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