Correlation Between NTG Nordic and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on NTG Nordic and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and EVS Broadcast.
Diversification Opportunities for NTG Nordic and EVS Broadcast
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NTG and EVS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of NTG Nordic i.e., NTG Nordic and EVS Broadcast go up and down completely randomly.
Pair Corralation between NTG Nordic and EVS Broadcast
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the EVS Broadcast. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.01 times less risky than EVS Broadcast. The stock trades about -0.18 of its potential returns per unit of risk. The EVS Broadcast Equipment is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,731 in EVS Broadcast Equipment on September 13, 2024 and sell it today you would earn a total of 309.00 from holding EVS Broadcast Equipment or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NTG Nordic Transport vs. EVS Broadcast Equipment
Performance |
| Timeline |
| NTG Nordic Transport |
| EVS Broadcast Equipment |
NTG Nordic and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and EVS Broadcast
The main advantage of trading using opposite NTG Nordic and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. SIVERS SEMICONDUCTORS AB | NTG Nordic vs. NorAm Drilling AS | NTG Nordic vs. Norsk Hydro ASA |
| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |