Correlation Between North Media and Nordea Invest
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By analyzing existing cross correlation between North Media AS and Nordea Invest Basis, you can compare the effects of market volatilities on North Media and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Media and Nordea Invest.
Diversification Opportunities for North Media and Nordea Invest
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between North and Nordea is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of North Media i.e., North Media and Nordea Invest go up and down completely randomly.
Pair Corralation between North Media and Nordea Invest
Assuming the 90 days trading horizon North Media AS is expected to under-perform the Nordea Invest. In addition to that, North Media is 3.06 times more volatile than Nordea Invest Basis. It trades about -0.02 of its total potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.05 per unit of volatility. If you would invest 13,475 in Nordea Invest Basis on October 13, 2024 and sell it today you would earn a total of 1,860 from holding Nordea Invest Basis or generate 13.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.58% |
| Values | Daily Returns |
North Media AS vs. Nordea Invest Basis
Performance |
| Timeline |
| North Media AS |
| Nordea Invest Basis |
North Media and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Media and Nordea Invest
The main advantage of trading using opposite North Media and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Media position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group AS |
| Nordea Invest vs. Djurslands Bank | Nordea Invest vs. North Media AS | Nordea Invest vs. Sydbank AS | Nordea Invest vs. Nordinvestments 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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