Correlation Between New Nordic and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both New Nordic and Goodbye Kansas 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 New Nordic and Goodbye Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Nordic Healthbrands and Goodbye Kansas Group, you can compare the effects of market volatilities on New Nordic and Goodbye Kansas 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 New Nordic with a short position of Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Nordic and Goodbye Kansas.
Diversification Opportunities for New Nordic and Goodbye Kansas
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between New and Goodbye is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding New Nordic Healthbrands and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group and New Nordic 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 New Nordic Healthbrands are associated (or correlated) with Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of New Nordic i.e., New Nordic and Goodbye Kansas go up and down completely randomly.
Pair Corralation between New Nordic and Goodbye Kansas
Assuming the 90 days trading horizon New Nordic is expected to generate 160.67 times less return on investment than Goodbye Kansas. But when comparing it to its historical volatility, New Nordic Healthbrands is 6.46 times less risky than Goodbye Kansas. It trades about 0.0 of its potential returns per unit of risk. Goodbye Kansas Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Goodbye Kansas Group on August 25, 2024 and sell it today you would lose (388.00) from holding Goodbye Kansas Group or give up 73.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
New Nordic Healthbrands vs. Goodbye Kansas Group
Performance |
| Timeline |
| New Nordic Healthbrands |
| Goodbye Kansas Group |
New Nordic and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Nordic and Goodbye Kansas
The main advantage of trading using opposite New Nordic and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Nordic position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| New Nordic vs. Stille AB | New Nordic vs. Midsona AB | New Nordic vs. Precio Fishbone AB | New Nordic vs. C Rad AB |
| Goodbye Kansas vs. Raketech Group Holding | Goodbye Kansas vs. FormPipe Software AB | Goodbye Kansas vs. New Nordic Healthbrands | Goodbye Kansas vs. Sdiptech 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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