Correlation Between Nidaros Sparebank and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Nidaros Sparebank and Proximar Seafood 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 Nidaros Sparebank and Proximar Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nidaros Sparebank and Proximar Seafood AS, you can compare the effects of market volatilities on Nidaros Sparebank and Proximar Seafood 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 Nidaros Sparebank with a short position of Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nidaros Sparebank and Proximar Seafood.
Diversification Opportunities for Nidaros Sparebank and Proximar Seafood
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nidaros and Proximar is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nidaros Sparebank and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood and Nidaros Sparebank 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 Nidaros Sparebank are associated (or correlated) with Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Nidaros Sparebank i.e., Nidaros Sparebank and Proximar Seafood go up and down completely randomly.
Pair Corralation between Nidaros Sparebank and Proximar Seafood
Assuming the 90 days trading horizon Nidaros Sparebank is expected to under-perform the Proximar Seafood. But the stock apears to be less risky and, when comparing its historical volatility, Nidaros Sparebank is 1.88 times less risky than Proximar Seafood. The stock trades about -0.01 of its potential returns per unit of risk. The Proximar Seafood AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Proximar Seafood AS on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Proximar Seafood AS or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nidaros Sparebank vs. Proximar Seafood AS
Performance |
| Timeline |
| Nidaros Sparebank |
| Proximar Seafood |
Nidaros Sparebank and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nidaros Sparebank and Proximar Seafood
The main advantage of trading using opposite Nidaros Sparebank and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nidaros Sparebank position performs unexpectedly, Proximar Seafood 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 Proximar Seafood will offset losses from the drop in Proximar Seafood's long position.| Nidaros Sparebank vs. Kraft Bank Asa | Nidaros Sparebank vs. Lea Bank ASA | Nidaros Sparebank vs. Morrow Bank ASA | Nidaros Sparebank vs. Sogn Sparebank |
| Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Nordic Technology Group | Proximar Seafood vs. Romerike Sparebank | Proximar Seafood vs. Morrow Bank ASA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |