Correlation Between Nordea Invest and Dow Jones
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By analyzing existing cross correlation between Nordea Invest Stabile and Dow Jones Industrial, you can compare the effects of market volatilities on Nordea Invest and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and Dow Jones.
Diversification Opportunities for Nordea Invest and Dow Jones
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordea and Dow is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Stabile and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Stabile are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nordea Invest i.e., Nordea Invest and Dow Jones go up and down completely randomly.
Pair Corralation between Nordea Invest and Dow Jones
Assuming the 90 days trading horizon Nordea Invest Stabile is expected to generate 1.17 times more return on investment than Dow Jones. However, Nordea Invest is 1.17 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.01 per unit of risk. If you would invest 30,710 in Nordea Invest Stabile on September 19, 2024 and sell it today you would earn a total of 190.00 from holding Nordea Invest Stabile or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nordea Invest Stabile vs. Dow Jones Industrial
Performance |
| Timeline |
Nordea Invest and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nordea Invest Stabile
Pair trading matchups for Nordea Invest
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nordea Invest and Dow Jones
The main advantage of trading using opposite Nordea Invest and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Skjern Bank AS | Nordea Invest vs. Danske Andelskassers Bank | Nordea Invest vs. Jyske Bank AS |
| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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