Correlation Between Nordic Iron and Kakel Max
Can any of the company-specific risk be diversified away by investing in both Nordic Iron and Kakel Max 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 Kakel Max 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 Kakel Max AB, you can compare the effects of market volatilities on Nordic Iron and Kakel Max 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 Kakel Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Iron and Kakel Max.
Diversification Opportunities for Nordic Iron and Kakel Max
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and Kakel is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Iron Ore and Kakel Max AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakel Max AB 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 Kakel Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakel Max AB has no effect on the direction of Nordic Iron i.e., Nordic Iron and Kakel Max go up and down completely randomly.
Pair Corralation between Nordic Iron and Kakel Max
Assuming the 90 days trading horizon Nordic Iron Ore is expected to generate 1.59 times more return on investment than Kakel Max. However, Nordic Iron is 1.59 times more volatile than Kakel Max AB. It trades about 0.05 of its potential returns per unit of risk. Kakel Max AB is currently generating about -0.07 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordic Iron Ore vs. Kakel Max AB
Performance |
| Timeline |
| Nordic Iron Ore |
| Kakel Max AB |
Nordic Iron and Kakel Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Iron and Kakel Max
The main advantage of trading using opposite Nordic Iron and Kakel Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Iron position performs unexpectedly, Kakel Max 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 Kakel Max will offset losses from the drop in Kakel Max'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 |
| Kakel Max vs. aXichem AB | Kakel Max vs. Polygiene AB | Kakel Max vs. Nordic Iron Ore | Kakel Max vs. Arctic Gold Publ |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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