Correlation Between North Media and Flgger Group
Can any of the company-specific risk be diversified away by investing in both North Media and Flgger Group 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 North Media and Flgger Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Media AS and Flgger group AS, you can compare the effects of market volatilities on North Media and Flgger Group 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 Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Media and Flgger Group.
Diversification Opportunities for North Media and Flgger Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Flgger is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group AS 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 Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of North Media i.e., North Media and Flgger Group go up and down completely randomly.
Pair Corralation between North Media and Flgger Group
Assuming the 90 days trading horizon North Media AS is expected to generate 1.28 times more return on investment than Flgger Group. However, North Media is 1.28 times more volatile than Flgger group AS. It trades about -0.01 of its potential returns per unit of risk. Flgger group AS is currently generating about -0.02 per unit of risk. If you would invest 5,702 in North Media AS on November 1, 2024 and sell it today you would lose (792.00) from holding North Media AS or give up 13.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
North Media AS vs. Flgger group AS
Performance |
| Timeline |
| North Media AS |
| Flgger group AS |
North Media and Flgger Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Media and Flgger Group
The main advantage of trading using opposite North Media and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media position performs unexpectedly, Flgger Group 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 Flgger Group will offset losses from the drop in Flgger Group's long position.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group vs. Matas 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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