Correlation Between Nordea Bank and Kempower Oyj
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By analyzing existing cross correlation between Nordea Bank Abp and Kempower Oyj, you can compare the effects of market volatilities on Nordea Bank and Kempower 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 Kempower Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Kempower Oyj.
Diversification Opportunities for Nordea Bank and Kempower Oyj
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordea and Kempower is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Kempower Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempower 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 Kempower Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempower Oyj has no effect on the direction of Nordea Bank i.e., Nordea Bank and Kempower Oyj go up and down completely randomly.
Pair Corralation between Nordea Bank and Kempower Oyj
Assuming the 90 days trading horizon Nordea Bank Abp is expected to generate 0.35 times more return on investment than Kempower Oyj. However, Nordea Bank Abp is 2.82 times less risky than Kempower Oyj. It trades about 0.03 of its potential returns per unit of risk. Kempower Oyj is currently generating about -0.03 per unit of risk. If you would invest 909.00 in Nordea Bank Abp on August 31, 2024 and sell it today you would earn a total of 162.00 from holding Nordea Bank Abp or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Nordea Bank Abp vs. Kempower Oyj
Performance |
| Timeline |
| Nordea Bank Abp |
| Kempower Oyj |
Nordea Bank and Kempower Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Kempower Oyj
The main advantage of trading using opposite Nordea Bank and Kempower Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Kempower 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 Kempower Oyj will offset losses from the drop in Kempower 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 |
| Kempower Oyj vs. Nightingale Health Oyj | Kempower Oyj vs. Trainers House Oyj | Kempower Oyj vs. SSH Communications Security | Kempower Oyj vs. Aiforia Technologies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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