Correlation Between Nordea Invest and North Media
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By analyzing existing cross correlation between Nordea Invest Danske and North Media AS, you can compare the effects of market volatilities on Nordea Invest and North Media 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 North Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and North Media.
Diversification Opportunities for Nordea Invest and North Media
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordea and North is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Danske and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media 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 North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and North Media go up and down completely randomly.
Pair Corralation between Nordea Invest and North Media
Assuming the 90 days trading horizon Nordea Invest Danske is expected to generate 0.51 times more return on investment than North Media. However, Nordea Invest Danske is 1.97 times less risky than North Media. It trades about 0.01 of its potential returns per unit of risk. North Media AS is currently generating about -0.01 per unit of risk. If you would invest 17,800 in Nordea Invest Danske on September 19, 2024 and sell it today you would earn a total of 510.00 from holding Nordea Invest Danske or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nordea Invest Danske vs. North Media AS
Performance |
| Timeline |
| Nordea Invest Danske |
| North Media AS |
Nordea Invest and North Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and North Media
The main advantage of trading using opposite Nordea Invest and North Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, North Media 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 North Media will offset losses from the drop in North Media's long position.| Nordea Invest vs. North Media AS | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Nordfyns Bank AS | Nordea Invest vs. TROPHY GAMES Development |
| North Media vs. PARKEN Sport Entertainment | North Media vs. Bang Olufsen | North Media vs. BioPorto | North Media vs. cBrain 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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