Correlation Between Nordic Iron and Catena Media
Can any of the company-specific risk be diversified away by investing in both Nordic Iron and Catena Media 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 Nordic Iron and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Iron Ore and Catena Media plc, you can compare the effects of market volatilities on Nordic Iron and Catena Media 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 Nordic Iron with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Iron and Catena Media.
Diversification Opportunities for Nordic Iron and Catena Media
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and Catena is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Iron Ore and Catena Media plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media plc and Nordic Iron 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 Nordic Iron Ore are associated (or correlated) with Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media plc has no effect on the direction of Nordic Iron i.e., Nordic Iron and Catena Media go up and down completely randomly.
Pair Corralation between Nordic Iron and Catena Media
Assuming the 90 days trading horizon Nordic Iron Ore is expected to generate 0.67 times more return on investment than Catena Media. However, Nordic Iron Ore is 1.49 times less risky than Catena Media. It trades about 0.05 of its potential returns per unit of risk. Catena Media plc is currently generating about -0.17 per unit of risk. If you would invest 486.00 in Nordic Iron Ore on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Nordic Iron Ore or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Iron Ore vs. Catena Media plc
Performance |
| Timeline |
| Nordic Iron Ore |
| Catena Media plc |
Nordic Iron and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Iron and Catena Media
The main advantage of trading using opposite Nordic Iron and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Iron position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| Nordic Iron vs. Leading Edge Materials | Nordic Iron vs. Alzinova AB | Nordic Iron vs. SaltX Technology Holding | Nordic Iron vs. KABE Group AB |
| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |