Correlation Between Nordea Invest and Prime Office
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By analyzing existing cross correlation between Nordea Invest Basis and Prime Office AS, you can compare the effects of market volatilities on Nordea Invest and Prime Office 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 Prime Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Prime Office.
Diversification Opportunities for Nordea Invest and Prime Office
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nordea and Prime is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Basis and Prime Office AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Office 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 Prime Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Office AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and Prime Office go up and down completely randomly.
Pair Corralation between Nordea Invest and Prime Office
Assuming the 90 days trading horizon Nordea Invest is expected to generate 1.05 times less return on investment than Prime Office. But when comparing it to its historical volatility, Nordea Invest Basis is 4.24 times less risky than Prime Office. It trades about 0.16 of its potential returns per unit of risk. Prime Office AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 17,200 in Prime Office AS on October 29, 2024 and sell it today you would earn a total of 200.00 from holding Prime Office AS or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Invest Basis vs. Prime Office AS
Performance |
| Timeline |
| Nordea Invest Basis |
| Prime Office AS |
Nordea Invest and Prime Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Prime Office
The main advantage of trading using opposite Nordea Invest and Prime Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Prime Office 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 Prime Office will offset losses from the drop in Prime Office'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 |
| Prime Office vs. Djurslands Bank | Prime Office vs. North Media AS | Prime Office vs. First Farms AS | Prime Office vs. Flgger group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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