Correlation Between Nordisk Bergteknik and Nordic Waterproofing
Can any of the company-specific risk be diversified away by investing in both Nordisk Bergteknik and Nordic Waterproofing 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 Nordisk Bergteknik and Nordic Waterproofing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordisk Bergteknik AB and Nordic Waterproofing Holding, you can compare the effects of market volatilities on Nordisk Bergteknik and Nordic Waterproofing 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 Nordisk Bergteknik with a short position of Nordic Waterproofing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordisk Bergteknik and Nordic Waterproofing.
Diversification Opportunities for Nordisk Bergteknik and Nordic Waterproofing
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordisk and Nordic is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Nordisk Bergteknik AB and Nordic Waterproofing Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Waterproofing and Nordisk Bergteknik 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 Nordisk Bergteknik AB are associated (or correlated) with Nordic Waterproofing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Waterproofing has no effect on the direction of Nordisk Bergteknik i.e., Nordisk Bergteknik and Nordic Waterproofing go up and down completely randomly.
Pair Corralation between Nordisk Bergteknik and Nordic Waterproofing
Assuming the 90 days trading horizon Nordisk Bergteknik AB is expected to under-perform the Nordic Waterproofing. But the stock apears to be less risky and, when comparing its historical volatility, Nordisk Bergteknik AB is 1.48 times less risky than Nordic Waterproofing. The stock trades about -0.51 of its potential returns per unit of risk. The Nordic Waterproofing Holding is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 16,060 in Nordic Waterproofing Holding on August 28, 2024 and sell it today you would earn a total of 1,500 from holding Nordic Waterproofing Holding or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordisk Bergteknik AB vs. Nordic Waterproofing Holding
Performance |
| Timeline |
| Nordisk Bergteknik |
| Nordic Waterproofing |
Nordisk Bergteknik and Nordic Waterproofing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordisk Bergteknik and Nordic Waterproofing
The main advantage of trading using opposite Nordisk Bergteknik and Nordic Waterproofing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordisk Bergteknik position performs unexpectedly, Nordic Waterproofing 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 Nordic Waterproofing will offset losses from the drop in Nordic Waterproofing's long position.| Nordisk Bergteknik vs. Ctek AB | Nordisk Bergteknik vs. NCAB Group | Nordisk Bergteknik vs. Bufab Holding AB | Nordisk Bergteknik vs. Profoto Holding AB |
| Nordic Waterproofing vs. Bufab Holding AB | Nordic Waterproofing vs. Garo AB | Nordic Waterproofing vs. Inwido AB | Nordic Waterproofing vs. CTT Systems AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |