Correlation Between Newcap Holding and Maj Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between Newcap Holding AS and Maj Invest Glob, you can compare the effects of market volatilities on Newcap Holding and Maj 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 Newcap Holding with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcap Holding and Maj Invest.
Diversification Opportunities for Newcap Holding and Maj Invest
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Newcap and Maj is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Newcap Holding AS and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob and Newcap Holding 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 Newcap Holding AS are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Newcap Holding i.e., Newcap Holding and Maj Invest go up and down completely randomly.
Pair Corralation between Newcap Holding and Maj Invest
Assuming the 90 days trading horizon Newcap Holding AS is expected to generate 21.96 times more return on investment than Maj Invest. However, Newcap Holding is 21.96 times more volatile than Maj Invest Glob. It trades about 0.04 of its potential returns per unit of risk. Maj Invest Glob is currently generating about 0.09 per unit of risk. If you would invest 18.00 in Newcap Holding AS on September 3, 2024 and sell it today you would lose (8.20) from holding Newcap Holding AS or give up 45.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newcap Holding AS vs. Maj Invest Glob
Performance |
| Timeline |
| Newcap Holding AS |
| Maj Invest Glob |
Newcap Holding and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcap Holding and Maj Invest
The main advantage of trading using opposite Newcap Holding and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcap Holding position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Newcap Holding vs. SKAKO AS | Newcap Holding vs. Lollands Bank | Newcap Holding vs. Scandinavian Brake Systems | Newcap Holding vs. Rovsing AS |
| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |