Correlation Between North Media and Nordea Invest
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By analyzing existing cross correlation between North Media AS and Nordea Invest Stabile, 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
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between North and Nordea is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding North Media AS and Nordea Invest Stabile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Stabile 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 Stabile 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 3.14 times more volatile than Nordea Invest Stabile. It trades about -0.05 of its total potential returns per unit of risk. Nordea Invest Stabile is currently generating about 0.08 per unit of volatility. If you would invest 27,810 in Nordea Invest Stabile on September 20, 2024 and sell it today you would earn a total of 3,100 from holding Nordea Invest Stabile or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
North Media AS vs. Nordea Invest Stabile
Performance |
| Timeline |
| North Media AS |
| Nordea Invest Stabile |
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. Jyske Bank AS | Nordea Invest vs. Kreditbanken AS | Nordea Invest vs. North Media AS | Nordea Invest vs. Strategic Investments 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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