Correlation Between Nordic Iron and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Nordic Iron and Fluoguide 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 Fluoguide 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 Fluoguide AS, you can compare the effects of market volatilities on Nordic Iron and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Iron and Fluoguide.
Diversification Opportunities for Nordic Iron and Fluoguide
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nordic and Fluoguide is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Iron Ore and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Nordic Iron i.e., Nordic Iron and Fluoguide go up and down completely randomly.
Pair Corralation between Nordic Iron and Fluoguide
Assuming the 90 days trading horizon Nordic Iron Ore is expected to generate 0.89 times more return on investment than Fluoguide. However, Nordic Iron Ore is 1.13 times less risky than Fluoguide. It trades about 0.24 of its potential returns per unit of risk. Fluoguide AS is currently generating about -0.09 per unit of risk. If you would invest 482.00 in Nordic Iron Ore on November 28, 2024 and sell it today you would earn a total of 78.00 from holding Nordic Iron Ore or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordic Iron Ore vs. Fluoguide AS
Performance |
| Timeline |
| Nordic Iron Ore |
| Fluoguide AS |
Nordic Iron and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Iron and Fluoguide
The main advantage of trading using opposite Nordic Iron and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Iron position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Nordic Iron vs. Leading Edge Materials | Nordic Iron vs. Alzinova AB | Nordic Iron vs. SaltX Technology Holding |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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