Correlation Between Novo Nordisk and Nordea Invest
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By analyzing existing cross correlation between Novo Nordisk AS and Nordea Invest Global, you can compare the effects of market volatilities on Novo Nordisk 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 Novo Nordisk with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novo Nordisk and Nordea Invest.
Diversification Opportunities for Novo Nordisk and Nordea Invest
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Novo and Nordea is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Novo Nordisk AS and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 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 Global has no effect on the direction of Novo Nordisk i.e., Novo Nordisk and Nordea Invest go up and down completely randomly.
Pair Corralation between Novo Nordisk and Nordea Invest
Assuming the 90 days trading horizon Novo Nordisk AS is expected to generate 1.69 times more return on investment than Nordea Invest. However, Novo Nordisk is 1.69 times more volatile than Nordea Invest Global. It trades about 0.06 of its potential returns per unit of risk. Nordea Invest Global is currently generating about 0.05 per unit of risk. If you would invest 45,803 in Novo Nordisk AS on September 20, 2024 and sell it today you would earn a total of 31,357 from holding Novo Nordisk AS or generate 68.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Novo Nordisk AS vs. Nordea Invest Global
Performance |
| Timeline |
| Novo Nordisk AS |
| Nordea Invest Global |
Novo Nordisk and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novo Nordisk and Nordea Invest
The main advantage of trading using opposite Novo Nordisk and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novo Nordisk 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.| Novo Nordisk vs. Vestas Wind Systems | Novo Nordisk vs. Danske Bank AS | Novo Nordisk vs. Bavarian Nordic | Novo Nordisk vs. DSV Panalpina AS |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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