Correlation Between Nordea Invest and Nordea Bank
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By analyzing existing cross correlation between Nordea Invest Global and Nordea Bank Abp, you can compare the effects of market volatilities on Nordea Invest and Nordea Bank 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 Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Nordea Bank.
Diversification Opportunities for Nordea Invest and Nordea Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nordea and Nordea is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Global and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp 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 Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Nordea Invest i.e., Nordea Invest and Nordea Bank go up and down completely randomly.
Pair Corralation between Nordea Invest and Nordea Bank
Assuming the 90 days trading horizon Nordea Invest Global is expected to under-perform the Nordea Bank. But the stock apears to be less risky and, when comparing its historical volatility, Nordea Invest Global is 1.62 times less risky than Nordea Bank. The stock trades about -0.31 of its potential returns per unit of risk. The Nordea Bank Abp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,942 in Nordea Bank Abp on October 13, 2024 and sell it today you would earn a total of 192.00 from holding Nordea Bank Abp or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Nordea Invest Global vs. Nordea Bank Abp
Performance |
| Timeline |
| Nordea Invest Global |
| Nordea Bank Abp |
Nordea Invest and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and Nordea Bank
The main advantage of trading using opposite Nordea Invest and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank'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 |
| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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