Correlation Between Nordea Invest and Laan Spar
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By analyzing existing cross correlation between Nordea Invest Aktier 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
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and Laan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Aktier 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 Aktier 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
Assuming the 90 days trading horizon Nordea Invest is expected to generate 1.01 times less return on investment than Laan Spar. But when comparing it to its historical volatility, Nordea Invest Aktier is 1.26 times less risky than Laan Spar. It trades about 0.03 of its potential returns per unit of risk. Laan Spar Bank is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 63,030 in Laan Spar Bank on October 13, 2024 and sell it today you would earn a total of 6,970 from holding Laan Spar Bank or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.22% |
| Values | Daily Returns |
Nordea Invest Aktier vs. Laan Spar Bank
Performance |
| Timeline |
| Nordea Invest Aktier |
| Laan Spar Bank |
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.| Nordea Invest vs. Laan Spar Bank | Nordea Invest vs. Djurslands Bank | Nordea Invest vs. Strategic Investments AS | Nordea Invest vs. Alefarm Brewing AS |
| Laan Spar vs. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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