Correlation Between Nordea Invest and Laan Spar

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Can any of the company-specific risk be diversified away by investing in both Nordea Invest and Laan Spar 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 Invest and Laan Spar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea Invest Basis and Laan Spar Bank, you can compare the effects of market volatilities on Nordea Invest and Laan Spar 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 Invest with a short position of Laan Spar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Laan Spar.

Diversification Opportunities for Nordea Invest and Laan Spar

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Nordea and Laan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Basis and Laan Spar Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laan Spar Bank and Nordea Invest 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 Invest Basis are associated (or correlated) with Laan Spar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laan Spar Bank has no effect on the direction of Nordea Invest i.e., Nordea Invest and Laan Spar go up and down completely randomly.

Pair Corralation between Nordea Invest and Laan Spar

If you would invest  70,000  in Laan Spar Bank on November 8, 2024 and sell it today you would earn a total of  1,000.00  from holding Laan Spar Bank or generate 1.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.4%
ValuesDaily Returns

Nordea Invest Basis  vs.  Laan Spar Bank

 Performance 
       Timeline  
Nordea Invest Basis 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days Nordea Invest Basis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Nordea Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Laan Spar Bank 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Laan Spar Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Laan Spar is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Nordea Invest and Laan Spar Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nordea Invest and Laan Spar

The main advantage of trading using opposite Nordea Invest and Laan Spar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Laan Spar 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 Laan Spar will offset losses from the drop in Laan Spar's long position.
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The idea behind Nordea Invest Basis and Laan Spar Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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