Correlation Between Nordic Semiconductor and Pexip Holding
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Pexip Holding 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 Pexip Holding 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 Pexip Holding ASA, you can compare the effects of market volatilities on Nordic Semiconductor and Pexip Holding 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 Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Pexip Holding.
Diversification Opportunities for Nordic Semiconductor and Pexip Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordic and Pexip is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding ASA 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 Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Pexip Holding go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Pexip Holding
Assuming the 90 days trading horizon Nordic Semiconductor ASA is expected to under-perform the Pexip Holding. But the stock apears to be less risky and, when comparing its historical volatility, Nordic Semiconductor ASA is 1.21 times less risky than Pexip Holding. The stock trades about -0.23 of its potential returns per unit of risk. The Pexip Holding ASA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,275 in Pexip Holding ASA on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Pexip Holding ASA or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Pexip Holding ASA
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Pexip Holding ASA |
Nordic Semiconductor and Pexip Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Pexip Holding
The main advantage of trading using opposite Nordic Semiconductor and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Pexip Holding 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 Pexip Holding will offset losses from the drop in Pexip Holding's long position.| Nordic Semiconductor vs. Storebrand ASA | Nordic Semiconductor vs. DnB ASA | Nordic Semiconductor vs. Telenor ASA | Nordic Semiconductor vs. Kongsberg Gruppen ASA |
| Pexip Holding vs. Elliptic Laboratories AS | Pexip Holding vs. Huddlestock Fintech As | Pexip Holding vs. Elkem ASA | Pexip Holding 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |