Correlation Between Nordic Semiconductor and Cloudberry Clean
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Cloudberry Clean 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 Semiconductor and Cloudberry Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Cloudberry Clean Energy, you can compare the effects of market volatilities on Nordic Semiconductor and Cloudberry Clean 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 Semiconductor with a short position of Cloudberry Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Cloudberry Clean.
Diversification Opportunities for Nordic Semiconductor and Cloudberry Clean
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordic and Cloudberry is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Cloudberry Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudberry Clean Energy and Nordic Semiconductor 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 Semiconductor ASA are associated (or correlated) with Cloudberry Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudberry Clean Energy has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Cloudberry Clean go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Cloudberry Clean
Assuming the 90 days trading horizon Nordic Semiconductor ASA is expected to generate 1.07 times more return on investment than Cloudberry Clean. However, Nordic Semiconductor is 1.07 times more volatile than Cloudberry Clean Energy. It trades about -0.2 of its potential returns per unit of risk. Cloudberry Clean Energy is currently generating about -0.23 per unit of risk. If you would invest 10,915 in Nordic Semiconductor ASA on August 29, 2024 and sell it today you would lose (935.00) from holding Nordic Semiconductor ASA or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Cloudberry Clean Energy
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Cloudberry Clean Energy |
Nordic Semiconductor and Cloudberry Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Cloudberry Clean
The main advantage of trading using opposite Nordic Semiconductor and Cloudberry Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Cloudberry Clean 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 Cloudberry Clean will offset losses from the drop in Cloudberry Clean's long position.| Nordic Semiconductor vs. Storebrand ASA | Nordic Semiconductor vs. DnB ASA | Nordic Semiconductor vs. Telenor ASA | Nordic Semiconductor vs. Kongsberg Gruppen ASA |
| Cloudberry Clean vs. Bonheur | Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Cadeler As |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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