Correlation Between NTG Nordic and SENKO GROUP
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and SENKO GROUP 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 SENKO GROUP 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 SENKO GROUP HOLDINGS, you can compare the effects of market volatilities on NTG Nordic and SENKO GROUP 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 SENKO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and SENKO GROUP.
Diversification Opportunities for NTG Nordic and SENKO GROUP
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NTG and SENKO is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS 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 SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of NTG Nordic i.e., NTG Nordic and SENKO GROUP go up and down completely randomly.
Pair Corralation between NTG Nordic and SENKO GROUP
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the SENKO GROUP. In addition to that, NTG Nordic is 1.09 times more volatile than SENKO GROUP HOLDINGS. It trades about -0.22 of its total potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about 0.11 per unit of volatility. If you would invest 930.00 in SENKO GROUP HOLDINGS on November 5, 2024 and sell it today you would earn a total of 30.00 from holding SENKO GROUP HOLDINGS or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
NTG Nordic Transport vs. SENKO GROUP HOLDINGS
Performance |
| Timeline |
| NTG Nordic Transport |
| SENKO GROUP HOLDINGS |
NTG Nordic and SENKO GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and SENKO GROUP
The main advantage of trading using opposite NTG Nordic and SENKO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, SENKO GROUP 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 SENKO GROUP will offset losses from the drop in SENKO GROUP's long position.| NTG Nordic vs. Kuehne Nagel International | NTG Nordic vs. ZTO EXPRESS | NTG Nordic vs. NIKKON HOLDINGS TD | NTG Nordic vs. SENKO GROUP HOLDINGS |
| SENKO GROUP vs. Spirent Communications plc | SENKO GROUP vs. Cogent Communications Holdings | SENKO GROUP vs. Fuji Media Holdings | SENKO GROUP vs. CRISPR Therapeutics AG |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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