Correlation Between Nordea Invest and NTG Nordic
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By analyzing existing cross correlation between Nordea Invest Danske and NTG Nordic Transport, you can compare the effects of market volatilities on Nordea Invest and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and NTG Nordic.
Diversification Opportunities for Nordea Invest and NTG Nordic
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nordea and NTG is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Danske and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Nordea Invest i.e., Nordea Invest and NTG Nordic go up and down completely randomly.
Pair Corralation between Nordea Invest and NTG Nordic
Assuming the 90 days trading horizon Nordea Invest Danske is expected to generate 0.59 times more return on investment than NTG Nordic. However, Nordea Invest Danske is 1.69 times less risky than NTG Nordic. It trades about 0.19 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.41 per unit of risk. If you would invest 17,845 in Nordea Invest Danske on September 20, 2024 and sell it today you would earn a total of 465.00 from holding Nordea Invest Danske or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Invest Danske vs. NTG Nordic Transport
Performance |
| Timeline |
| Nordea Invest Danske |
| NTG Nordic Transport |
Nordea Invest and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and NTG Nordic
The main advantage of trading using opposite Nordea Invest and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. TROPHY GAMES Development | Nordea Invest vs. BankIn Bredygt Klimaakt | Nordea Invest vs. Ringkjoebing Landbobank AS |
| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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