Correlation Between Nordea Invest and PARKEN Sport
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By analyzing existing cross correlation between Nordea Invest Stabil and PARKEN Sport Entertainment, you can compare the effects of market volatilities on Nordea Invest and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and PARKEN Sport.
Diversification Opportunities for Nordea Invest and PARKEN Sport
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordea and PARKEN is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Stabil and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 Stabil are associated (or correlated) with PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of Nordea Invest i.e., Nordea Invest and PARKEN Sport go up and down completely randomly.
Pair Corralation between Nordea Invest and PARKEN Sport
Assuming the 90 days trading horizon Nordea Invest is expected to generate 1.14 times less return on investment than PARKEN Sport. But when comparing it to its historical volatility, Nordea Invest Stabil is 4.29 times less risky than PARKEN Sport. It trades about 0.19 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,550 in PARKEN Sport Entertainment on September 21, 2024 and sell it today you would earn a total of 1,200 from holding PARKEN Sport Entertainment or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.93% |
| Values | Daily Returns |
Nordea Invest Stabil vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| Nordea Invest Stabil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| PARKEN Sport Enterta |
Nordea Invest and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and PARKEN Sport
The main advantage of trading using opposite Nordea Invest and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea Invest position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Jyske Bank AS | Nordea Invest vs. Strategic Investments AS | Nordea Invest vs. Nordfyns Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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