Correlation Between NTG Nordic and MSCI
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and MSCI 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 MSCI 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 MSCI Inc, you can compare the effects of market volatilities on NTG Nordic and MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and MSCI.
Diversification Opportunities for NTG Nordic and MSCI
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NTG and MSCI is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of NTG Nordic i.e., NTG Nordic and MSCI go up and down completely randomly.
Pair Corralation between NTG Nordic and MSCI
Assuming the 90 days trading horizon NTG Nordic is expected to generate 1.56 times less return on investment than MSCI. In addition to that, NTG Nordic is 1.26 times more volatile than MSCI Inc. It trades about 0.02 of its total potential returns per unit of risk. MSCI Inc is currently generating about 0.03 per unit of volatility. If you would invest 51,708 in MSCI Inc on August 25, 2024 and sell it today you would earn a total of 4,532 from holding MSCI Inc or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. MSCI Inc
Performance |
| Timeline |
| NTG Nordic Transport |
| MSCI Inc |
NTG Nordic and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and MSCI
The main advantage of trading using opposite NTG Nordic and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| NTG Nordic vs. SINGAPORE POST | NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech |
| MSCI vs. USWE SPORTS AB | MSCI vs. NTG Nordic Transport | MSCI vs. Salesforce | MSCI vs. TITANIUM TRANSPORTGROUP |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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