Correlation Between Nordea Invest and NTG Nordic

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nordea Invest and NTG Nordic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nordea Invest and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea Invest Stabile 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

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nordea and NTG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Stabile 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 Stabile 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 Stabile is expected to generate 0.54 times more return on investment than NTG Nordic. However, Nordea Invest Stabile is 1.84 times less risky than NTG Nordic. It trades about 0.0 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.21 per unit of risk. If you would invest  30,900  in Nordea Invest Stabile on September 19, 2024 and sell it today you would earn a total of  0.00  from holding Nordea Invest Stabile or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.86%
ValuesDaily Returns

Nordea Invest Stabile  vs.  NTG Nordic Transport

 Performance 
       Timeline  
Nordea Invest Stabile 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Nordea Invest Stabile are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Nordea Invest is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
NTG Nordic Transport 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NTG Nordic Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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. Skjern Bank AS
Nordea Invest vs. Danske Andelskassers Bank
Nordea Invest vs. Jyske Bank AS
The idea behind Nordea Invest Stabile and NTG Nordic Transport pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY