Correlation Between Nordic Mining and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Nordic Mining and Proximar Seafood 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 Mining and Proximar Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Mining ASA and Proximar Seafood AS, you can compare the effects of market volatilities on Nordic Mining and Proximar Seafood 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 Mining with a short position of Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Mining and Proximar Seafood.
Diversification Opportunities for Nordic Mining and Proximar Seafood
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nordic and Proximar is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Mining ASA and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood and Nordic Mining 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 Mining ASA are associated (or correlated) with Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Nordic Mining i.e., Nordic Mining and Proximar Seafood go up and down completely randomly.
Pair Corralation between Nordic Mining and Proximar Seafood
Assuming the 90 days trading horizon Nordic Mining ASA is expected to generate 0.79 times more return on investment than Proximar Seafood. However, Nordic Mining ASA is 1.27 times less risky than Proximar Seafood. It trades about -0.03 of its potential returns per unit of risk. Proximar Seafood AS is currently generating about -0.08 per unit of risk. If you would invest 2,590 in Nordic Mining ASA on September 1, 2024 and sell it today you would lose (49.00) from holding Nordic Mining ASA or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Mining ASA vs. Proximar Seafood AS
Performance |
| Timeline |
| Nordic Mining ASA |
| Proximar Seafood |
Nordic Mining and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Mining and Proximar Seafood
The main advantage of trading using opposite Nordic Mining and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Mining position performs unexpectedly, Proximar Seafood 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 Proximar Seafood will offset losses from the drop in Proximar Seafood's long position.| Nordic Mining vs. SpareBank 1 stlandet | Nordic Mining vs. Odfjell Drilling | Nordic Mining vs. BW Offshore | Nordic Mining vs. Dolphin Drilling AS |
| Proximar Seafood vs. Andfjord Salmon AS | Proximar Seafood vs. Elkem ASA | Proximar Seafood vs. Integrated Wind Solutions | Proximar Seafood vs. Vow ASA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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