Correlation Between Nordea Invest and NTG Nordic
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By analyzing existing cross correlation between Nordea Invest Global 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
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordea and NTG is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Global 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 Global 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 Global is expected to under-perform the NTG Nordic. In addition to that, Nordea Invest is 1.32 times more volatile than NTG Nordic Transport. It trades about -0.16 of its total potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.2 per unit of volatility. If you would invest 25,500 in NTG Nordic Transport on November 7, 2024 and sell it today you would lose (1,700) from holding NTG Nordic Transport or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordea Invest Global vs. NTG Nordic Transport
Performance |
| Timeline |
| Nordea Invest Global |
| 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. Ringkjoebing Landbobank AS | Nordea Invest vs. Scandinavian Investment Group | Nordea Invest vs. Scandinavian Tobacco Group | Nordea Invest vs. TROPHY GAMES Development |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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