Correlation Between Novo Nordisk and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Novo Nordisk and Maj Invest 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 Novo Nordisk and Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novo Nordisk AS and Maj Invest Pension, you can compare the effects of market volatilities on Novo Nordisk and Maj 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 Novo Nordisk with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novo Nordisk and Maj Invest.
Diversification Opportunities for Novo Nordisk and Maj Invest
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Novo and Maj is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Novo Nordisk AS and Maj Invest Pension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Pension and Novo Nordisk 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 Novo Nordisk AS are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Pension has no effect on the direction of Novo Nordisk i.e., Novo Nordisk and Maj Invest go up and down completely randomly.
Pair Corralation between Novo Nordisk and Maj Invest
Assuming the 90 days trading horizon Novo Nordisk AS is expected to generate 4.03 times more return on investment than Maj Invest. However, Novo Nordisk is 4.03 times more volatile than Maj Invest Pension. It trades about 0.06 of its potential returns per unit of risk. Maj Invest Pension is currently generating about 0.06 per unit of risk. If you would invest 46,765 in Novo Nordisk AS on August 31, 2024 and sell it today you would earn a total of 27,995 from holding Novo Nordisk AS or generate 59.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novo Nordisk AS vs. Maj Invest Pension
Performance |
| Timeline |
| Novo Nordisk AS |
| Maj Invest Pension |
Novo Nordisk and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novo Nordisk and Maj Invest
The main advantage of trading using opposite Novo Nordisk and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novo Nordisk position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Novo Nordisk vs. Vestas Wind Systems | Novo Nordisk vs. Danske Bank AS | Novo Nordisk vs. Bavarian Nordic | Novo Nordisk vs. DSV Panalpina AS |
| Maj Invest vs. Prime Office AS | Maj Invest vs. Sydbank AS | Maj Invest vs. TROPHY GAMES Development | Maj Invest vs. Groenlandsbanken 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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