Correlation Between Nordinvestments and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Nordinvestments and MapsPeople 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 MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordinvestments AS and MapsPeople AS, you can compare the effects of market volatilities on Nordinvestments and MapsPeople 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 MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordinvestments and MapsPeople.
Diversification Opportunities for Nordinvestments and MapsPeople
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordinvestments and MapsPeople is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordinvestments AS and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS 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 MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Nordinvestments i.e., Nordinvestments and MapsPeople go up and down completely randomly.
Pair Corralation between Nordinvestments and MapsPeople
Assuming the 90 days trading horizon Nordinvestments AS is expected to under-perform the MapsPeople. But the stock apears to be less risky and, when comparing its historical volatility, Nordinvestments AS is 3.56 times less risky than MapsPeople. The stock trades about -0.03 of its potential returns per unit of risk. The MapsPeople AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 218.00 in MapsPeople AS on August 25, 2024 and sell it today you would lose (88.00) from holding MapsPeople AS or give up 40.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Nordinvestments AS vs. MapsPeople AS
Performance |
| Timeline |
| Nordinvestments AS |
| MapsPeople AS |
Nordinvestments and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordinvestments and MapsPeople
The main advantage of trading using opposite Nordinvestments and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordinvestments position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople's long position.| Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces Group AS | Nordinvestments vs. BankInvest Optima 30 | Nordinvestments vs. Gabriel Holding |
| MapsPeople vs. Konsolidator AS | MapsPeople vs. Bavarian Nordic | MapsPeople vs. Investeringsselskabet Luxor AS | MapsPeople vs. cBrain 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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