Correlation Between Nordea Bank and Checkin Group
Can any of the company-specific risk be diversified away by investing in both Nordea Bank and Checkin Group 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 Checkin Group 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 Checkin Group AB, you can compare the effects of market volatilities on Nordea Bank and Checkin Group 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 Checkin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Bank and Checkin Group.
Diversification Opportunities for Nordea Bank and Checkin Group
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordea and Checkin is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Bank Abp and Checkin Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkin Group AB 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 Checkin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkin Group AB has no effect on the direction of Nordea Bank i.e., Nordea Bank and Checkin Group go up and down completely randomly.
Pair Corralation between Nordea Bank and Checkin Group
Assuming the 90 days trading horizon Nordea Bank Abp is expected to under-perform the Checkin Group. But the stock apears to be less risky and, when comparing its historical volatility, Nordea Bank Abp is 4.26 times less risky than Checkin Group. The stock trades about -0.04 of its potential returns per unit of risk. The Checkin Group AB is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Checkin Group AB on August 25, 2024 and sell it today you would earn a total of 395.00 from holding Checkin Group AB or generate 27.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Bank Abp vs. Checkin Group AB
Performance |
| Timeline |
| Nordea Bank Abp |
| Checkin Group AB |
Nordea Bank and Checkin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Bank and Checkin Group
The main advantage of trading using opposite Nordea Bank and Checkin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Bank position performs unexpectedly, Checkin Group 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 Checkin Group will offset losses from the drop in Checkin Group's long position.| Nordea Bank vs. Skandinaviska Enskilda Banken | Nordea Bank vs. Skandinaviska Enskilda Banken | Nordea Bank vs. Swedbank AB | Nordea Bank vs. TF Bank AB |
| Checkin Group vs. Bambuser AB | Checkin Group vs. Cint Group AB | Checkin Group vs. Sinch AB | Checkin Group vs. Surgical Science Sweden |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |