Correlation Between North Media and PF BankNordik
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By analyzing existing cross correlation between North Media AS and PF BankNordik, you can compare the effects of market volatilities on North Media and PF BankNordik 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 North Media with a short position of PF BankNordik. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Media and PF BankNordik.
Diversification Opportunities for North Media and PF BankNordik
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between North and BNORDIK-CSE is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and PF BankNordik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF BankNordik and North Media 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 North Media AS are associated (or correlated) with PF BankNordik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF BankNordik has no effect on the direction of North Media i.e., North Media and PF BankNordik go up and down completely randomly.
Pair Corralation between North Media and PF BankNordik
Assuming the 90 days trading horizon North Media is expected to generate 86.33 times less return on investment than PF BankNordik. But when comparing it to its historical volatility, North Media AS is 1.29 times less risky than PF BankNordik. It trades about 0.0 of its potential returns per unit of risk. PF BankNordik is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,700 in PF BankNordik on August 30, 2024 and sell it today you would earn a total of 3,700 from holding PF BankNordik or generate 29.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.19% |
| Values | Daily Returns |
North Media AS vs. PF BankNordik
Performance |
| Timeline |
| North Media AS |
| PF BankNordik |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
North Media and PF BankNordik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Media and PF BankNordik
The main advantage of trading using opposite North Media and PF BankNordik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media position performs unexpectedly, PF BankNordik 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 PF BankNordik will offset losses from the drop in PF BankNordik's long position.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
| PF BankNordik vs. Spar Nord Bank | PF BankNordik vs. Sydbank AS | PF BankNordik vs. Jyske Bank AS | PF BankNordik vs. Dampskibsselskabet Norden 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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