Correlation Between DNB NOR and Nordhealth
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By analyzing existing cross correlation between DNB NOR KAPFORV and Nordhealth AS, you can compare the effects of market volatilities on DNB NOR and Nordhealth 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 DNB NOR with a short position of Nordhealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB NOR and Nordhealth.
Diversification Opportunities for DNB NOR and Nordhealth
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DNB and Nordhealth is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding DNB NOR KAPFORV and Nordhealth AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordhealth AS and DNB NOR 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 DNB NOR KAPFORV are associated (or correlated) with Nordhealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordhealth AS has no effect on the direction of DNB NOR i.e., DNB NOR and Nordhealth go up and down completely randomly.
Pair Corralation between DNB NOR and Nordhealth
Assuming the 90 days trading horizon DNB NOR is expected to generate 47.36 times less return on investment than Nordhealth. But when comparing it to its historical volatility, DNB NOR KAPFORV is 33.58 times less risky than Nordhealth. It trades about 0.13 of its potential returns per unit of risk. Nordhealth AS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,570 in Nordhealth AS on August 29, 2024 and sell it today you would earn a total of 730.00 from holding Nordhealth AS or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DNB NOR KAPFORV vs. Nordhealth AS
Performance |
| Timeline |
| DNB NOR KAPFORV |
| Nordhealth AS |
DNB NOR and Nordhealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB NOR and Nordhealth
The main advantage of trading using opposite DNB NOR and Nordhealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB NOR position performs unexpectedly, Nordhealth 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 Nordhealth will offset losses from the drop in Nordhealth's long position.The idea behind DNB NOR KAPFORV and Nordhealth AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nordhealth vs. Carasent ASA | Nordhealth vs. Elkem ASA | Nordhealth vs. DNB NOR KAPFORV | Nordhealth vs. Integrated Wind Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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