Correlation Between Netcompany Group and Nordea Invest
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By analyzing existing cross correlation between Netcompany Group AS and Nordea Invest Danske, you can compare the effects of market volatilities on Netcompany Group and Nordea Invest 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 Netcompany Group with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcompany Group and Nordea Invest.
Diversification Opportunities for Netcompany Group and Nordea Invest
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netcompany and Nordea is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Netcompany Group AS and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske and Netcompany Group 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 Netcompany Group AS are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of Netcompany Group i.e., Netcompany Group and Nordea Invest go up and down completely randomly.
Pair Corralation between Netcompany Group and Nordea Invest
Assuming the 90 days trading horizon Netcompany Group AS is expected to under-perform the Nordea Invest. In addition to that, Netcompany Group is 3.3 times more volatile than Nordea Invest Danske. It trades about -0.1 of its total potential returns per unit of risk. Nordea Invest Danske is currently generating about -0.2 per unit of volatility. If you would invest 18,150 in Nordea Invest Danske on September 23, 2024 and sell it today you would lose (625.00) from holding Nordea Invest Danske or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netcompany Group AS vs. Nordea Invest Danske
Performance |
| Timeline |
| Netcompany Group |
| Nordea Invest Danske |
Netcompany Group and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcompany Group and Nordea Invest
The main advantage of trading using opposite Netcompany Group and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcompany Group position performs unexpectedly, Nordea Invest 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 Invest will offset losses from the drop in Nordea Invest's long position.| Netcompany Group vs. Penneo AS | Netcompany Group vs. Bactiquant AS | Netcompany Group vs. cBrain AS | Netcompany Group vs. FOM Technologies AS |
| Nordea Invest vs. Alefarm Brewing AS | Nordea Invest vs. Carnegie Wealth Management | Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Prime Office 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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