Correlation Between Nordea Invest and Novo Nordisk
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By analyzing existing cross correlation between Nordea Invest Basis and Novo Nordisk AS, you can compare the effects of market volatilities on Nordea Invest and Novo Nordisk 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 Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Novo Nordisk.
Diversification Opportunities for Nordea Invest and Novo Nordisk
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordea and Novo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Basis and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS 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 Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and Novo Nordisk go up and down completely randomly.
Pair Corralation between Nordea Invest and Novo Nordisk
Assuming the 90 days trading horizon Nordea Invest is expected to generate 2.41 times less return on investment than Novo Nordisk. But when comparing it to its historical volatility, Nordea Invest Basis is 3.63 times less risky than Novo Nordisk. It trades about 0.06 of its potential returns per unit of risk. Novo Nordisk AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 46,814 in Novo Nordisk AS on September 26, 2024 and sell it today you would earn a total of 15,446 from holding Novo Nordisk AS or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Nordea Invest Basis vs. Novo Nordisk AS
Performance |
| Timeline |
| Nordea Invest Basis |
| Novo Nordisk AS |
Nordea Invest and Novo Nordisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Novo Nordisk
The main advantage of trading using opposite Nordea Invest and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Novo Nordisk 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 Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
| Novo Nordisk vs. Vestas Wind Systems | Novo Nordisk vs. Danske Bank AS | Novo Nordisk vs. Bavarian Nordic | Novo Nordisk vs. DSV Panalpina AS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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