Correlation Between Nordea Invest and Maj Invest
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By analyzing existing cross correlation between Nordea Invest Global and Maj Invest Emerging, you can compare the effects of market volatilities on Nordea Invest and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Maj Invest.
Diversification Opportunities for Nordea Invest and Maj Invest
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordea and Maj is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Global and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging 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 Global are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Emerging has no effect on the direction of Nordea Invest i.e., Nordea Invest and Maj Invest go up and down completely randomly.
Pair Corralation between Nordea Invest and Maj Invest
Assuming the 90 days trading horizon Nordea Invest Global is expected to under-perform the Maj Invest. But the stock apears to be less risky and, when comparing its historical volatility, Nordea Invest Global is 1.55 times less risky than Maj Invest. The stock trades about -0.23 of its potential returns per unit of risk. The Maj Invest Emerging is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 12,155 in Maj Invest Emerging on October 9, 2024 and sell it today you would lose (325.00) from holding Maj Invest Emerging or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Nordea Invest Global vs. Maj Invest Emerging
Performance |
| Timeline |
| Nordea Invest Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Maj Invest Emerging |
Nordea Invest and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Maj Invest
The main advantage of trading using opposite Nordea Invest and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest'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 |
| Maj Invest vs. Maj Invest | Maj Invest vs. Maj Invest Value | Maj Invest vs. Maj Invest | Maj Invest vs. Sparinvest Lange |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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