Correlation Between New Nordic and Raketech Group
Can any of the company-specific risk be diversified away by investing in both New Nordic and Raketech Group 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 Raketech Group 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 Raketech Group Holding, you can compare the effects of market volatilities on New Nordic and Raketech Group 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 Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Nordic and Raketech Group.
Diversification Opportunities for New Nordic and Raketech Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and Raketech is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding New Nordic Healthbrands and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding 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 Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of New Nordic i.e., New Nordic and Raketech Group go up and down completely randomly.
Pair Corralation between New Nordic and Raketech Group
Assuming the 90 days trading horizon New Nordic Healthbrands is expected to generate 0.36 times more return on investment than Raketech Group. However, New Nordic Healthbrands is 2.78 times less risky than Raketech Group. It trades about -0.32 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.26 per unit of risk. If you would invest 1,800 in New Nordic Healthbrands on August 25, 2024 and sell it today you would lose (300.00) from holding New Nordic Healthbrands or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
New Nordic Healthbrands vs. Raketech Group Holding
Performance |
| Timeline |
| New Nordic Healthbrands |
| Raketech Group Holding |
New Nordic and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Nordic and Raketech Group
The main advantage of trading using opposite New Nordic and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Nordic position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group's long position.| New Nordic vs. Stille AB | New Nordic vs. Midsona AB | New Nordic vs. Precio Fishbone AB | New Nordic vs. C Rad AB |
| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |