Correlation Between Nordinvestments and Laan Spar
Can any of the company-specific risk be diversified away by investing in both Nordinvestments and Laan Spar 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 Nordinvestments and Laan Spar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordinvestments AS and Laan Spar Bank, you can compare the effects of market volatilities on Nordinvestments and Laan Spar 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 Nordinvestments with a short position of Laan Spar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordinvestments and Laan Spar.
Diversification Opportunities for Nordinvestments and Laan Spar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordinvestments and Laan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordinvestments AS and Laan Spar Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laan Spar Bank and Nordinvestments 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 Nordinvestments AS are associated (or correlated) with Laan Spar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laan Spar Bank has no effect on the direction of Nordinvestments i.e., Nordinvestments and Laan Spar go up and down completely randomly.
Pair Corralation between Nordinvestments and Laan Spar
If you would invest 69,000 in Laan Spar Bank on November 27, 2024 and sell it today you would earn a total of 6,500 from holding Laan Spar Bank or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordinvestments AS vs. Laan Spar Bank
Performance |
| Timeline |
| Nordinvestments AS |
| Laan Spar Bank |
Nordinvestments and Laan Spar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordinvestments and Laan Spar
The main advantage of trading using opposite Nordinvestments and Laan Spar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordinvestments position performs unexpectedly, Laan Spar 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 Laan Spar will offset losses from the drop in Laan Spar's long position.| Nordinvestments vs. Donkeyrepublic Holding AS | Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces Group AS |
| Laan Spar vs. Vestjysk Bank AS | Laan Spar vs. Skjern Bank AS | Laan Spar vs. Groenlandsbanken AS | Laan Spar vs. Kreditbanken 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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