Correlation Between NTG Nordic and OURGAME INTHOLDL
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and OURGAME INTHOLDL 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 NTG Nordic and OURGAME INTHOLDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on NTG Nordic and OURGAME INTHOLDL 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 NTG Nordic with a short position of OURGAME INTHOLDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and OURGAME INTHOLDL.
Diversification Opportunities for NTG Nordic and OURGAME INTHOLDL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NTG and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 and NTG Nordic 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 NTG Nordic Transport are associated (or correlated) with OURGAME INTHOLDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of NTG Nordic i.e., NTG Nordic and OURGAME INTHOLDL go up and down completely randomly.
Pair Corralation between NTG Nordic and OURGAME INTHOLDL
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the OURGAME INTHOLDL. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 3.63 times less risky than OURGAME INTHOLDL. The stock trades about -0.04 of its potential returns per unit of risk. The OURGAME INTHOLDL 00005 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1.60 in OURGAME INTHOLDL 00005 on November 1, 2024 and sell it today you would earn a total of 0.00 from holding OURGAME INTHOLDL 00005 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
NTG Nordic Transport vs. OURGAME INTHOLDL 00005
Performance |
| Timeline |
| NTG Nordic Transport |
| OURGAME INTHOLDL 00005 |
NTG Nordic and OURGAME INTHOLDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and OURGAME INTHOLDL
The main advantage of trading using opposite NTG Nordic and OURGAME INTHOLDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, OURGAME INTHOLDL 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 OURGAME INTHOLDL will offset losses from the drop in OURGAME INTHOLDL's long position.| NTG Nordic vs. BANKINTER ADR 2007 | NTG Nordic vs. CDN IMPERIAL BANK | NTG Nordic vs. Synovus Financial Corp | NTG Nordic vs. RCS MediaGroup SpA |
| OURGAME INTHOLDL vs. Sims Metal Management | OURGAME INTHOLDL vs. Performance Food Group | OURGAME INTHOLDL vs. Cleanaway Waste Management | OURGAME INTHOLDL vs. EBRO FOODS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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