Correlation Between NTG Nordic and HYDROFARM HLD
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and HYDROFARM HLD 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 HYDROFARM HLD 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 HYDROFARM HLD GRP, you can compare the effects of market volatilities on NTG Nordic and HYDROFARM HLD 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 HYDROFARM HLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and HYDROFARM HLD.
Diversification Opportunities for NTG Nordic and HYDROFARM HLD
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and HYDROFARM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and HYDROFARM HLD GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYDROFARM HLD GRP 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 HYDROFARM HLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYDROFARM HLD GRP has no effect on the direction of NTG Nordic i.e., NTG Nordic and HYDROFARM HLD go up and down completely randomly.
Pair Corralation between NTG Nordic and HYDROFARM HLD
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the HYDROFARM HLD. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 2.01 times less risky than HYDROFARM HLD. The stock trades about -0.02 of its potential returns per unit of risk. The HYDROFARM HLD GRP is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 103.00 in HYDROFARM HLD GRP on September 12, 2024 and sell it today you would lose (38.00) from holding HYDROFARM HLD GRP or give up 36.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. HYDROFARM HLD GRP
Performance |
| Timeline |
| NTG Nordic Transport |
| HYDROFARM HLD GRP |
NTG Nordic and HYDROFARM HLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and HYDROFARM HLD
The main advantage of trading using opposite NTG Nordic and HYDROFARM HLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, HYDROFARM HLD 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 HYDROFARM HLD will offset losses from the drop in HYDROFARM HLD's long position.| NTG Nordic vs. Gold Road Resources | NTG Nordic vs. FORMPIPE SOFTWARE AB | NTG Nordic vs. GOLD ROAD RES | NTG Nordic vs. Broadcom |
| HYDROFARM HLD vs. AB Volvo | HYDROFARM HLD vs. Daimler Truck Holding | HYDROFARM HLD vs. Superior Plus Corp | HYDROFARM HLD vs. SIVERS SEMICONDUCTORS AB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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