Correlation Between Nordea Bank and Silmaasema Oyj
Can any of the company-specific risk be diversified away by investing in both Nordea Bank and Silmaasema Oyj at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nordea Bank and Silmaasema Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea Bank Abp and Silmaasema Oyj, you can compare the effects of market volatilities on Nordea Bank and Silmaasema 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 Silmaasema Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Silmaasema Oyj.
Diversification Opportunities for Nordea Bank and Silmaasema Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordea and Silmaasema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Silmaasema Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silmaasema 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 Silmaasema Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silmaasema Oyj has no effect on the direction of Nordea Bank i.e., Nordea Bank and Silmaasema Oyj go up and down completely randomly.
Pair Corralation between Nordea Bank and Silmaasema Oyj
If you would invest 1,163 in Nordea Bank Abp on November 28, 2024 and sell it today you would earn a total of 99.00 from holding Nordea Bank Abp or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. Silmaasema Oyj
Performance |
| Timeline |
| Nordea Bank Abp |
| Silmaasema Oyj |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nordea Bank and Silmaasema Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Silmaasema Oyj
The main advantage of trading using opposite Nordea Bank and Silmaasema Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Silmaasema 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 Silmaasema Oyj will offset losses from the drop in Silmaasema 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 |
| Silmaasema Oyj vs. Detection Technology OY | Silmaasema Oyj vs. SSH Communications Security | Silmaasema Oyj vs. Aktia Bank Abp | Silmaasema Oyj vs. Finnair 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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