Correlation Between Nordea Invest and Alefarm Brewing
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By analyzing existing cross correlation between Nordea Invest Danske and Alefarm Brewing AS, you can compare the effects of market volatilities on Nordea Invest and Alefarm Brewing 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 Alefarm Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Alefarm Brewing.
Diversification Opportunities for Nordea Invest and Alefarm Brewing
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordea and Alefarm is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Danske and Alefarm Brewing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alefarm Brewing 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 Danske are associated (or correlated) with Alefarm Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alefarm Brewing AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and Alefarm Brewing go up and down completely randomly.
Pair Corralation between Nordea Invest and Alefarm Brewing
Assuming the 90 days trading horizon Nordea Invest is expected to generate 121.53 times less return on investment than Alefarm Brewing. But when comparing it to its historical volatility, Nordea Invest Danske is 4.33 times less risky than Alefarm Brewing. It trades about 0.0 of its potential returns per unit of risk. Alefarm Brewing AS is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Alefarm Brewing AS on December 11, 2024 and sell it today you would earn a total of 9.00 from holding Alefarm Brewing AS or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nordea Invest Danske vs. Alefarm Brewing AS
Performance |
| Timeline |
| Nordea Invest Danske |
| Alefarm Brewing AS |
Nordea Invest and Alefarm Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Alefarm Brewing
The main advantage of trading using opposite Nordea Invest and Alefarm Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Alefarm Brewing 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 Alefarm Brewing will offset losses from the drop in Alefarm Brewing's long position.| Nordea Invest vs. Jyske Bank AS | Nordea Invest vs. BankInv Kort HY | Nordea Invest vs. Scandinavian Tobacco Group | Nordea Invest vs. Nordinvestments AS |
| Alefarm Brewing vs. Danske Andelskassers Bank | Alefarm Brewing vs. PARKEN Sport Entertainment | Alefarm Brewing vs. Groenlandsbanken AS | Alefarm Brewing vs. Nordinvestments 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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