Correlation Between NTG Nordic and ANDRADA MINING
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and ANDRADA MINING 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 ANDRADA MINING 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 ANDRADA MINING LTD, you can compare the effects of market volatilities on NTG Nordic and ANDRADA MINING 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 ANDRADA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and ANDRADA MINING.
Diversification Opportunities for NTG Nordic and ANDRADA MINING
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and ANDRADA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and ANDRADA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDRADA MINING LTD 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 ANDRADA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDRADA MINING LTD has no effect on the direction of NTG Nordic i.e., NTG Nordic and ANDRADA MINING go up and down completely randomly.
Pair Corralation between NTG Nordic and ANDRADA MINING
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.44 times more return on investment than ANDRADA MINING. However, NTG Nordic Transport is 2.26 times less risky than ANDRADA MINING. It trades about 0.07 of its potential returns per unit of risk. ANDRADA MINING LTD is currently generating about -0.09 per unit of risk. If you would invest 3,615 in NTG Nordic Transport on August 28, 2024 and sell it today you would earn a total of 300.00 from holding NTG Nordic Transport or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. ANDRADA MINING LTD
Performance |
| Timeline |
| NTG Nordic Transport |
| ANDRADA MINING LTD |
NTG Nordic and ANDRADA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and ANDRADA MINING
The main advantage of trading using opposite NTG Nordic and ANDRADA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, ANDRADA MINING 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 ANDRADA MINING will offset losses from the drop in ANDRADA MINING's long position.| NTG Nordic vs. China Resources Beer | NTG Nordic vs. MYFAIR GOLD P | NTG Nordic vs. Tsingtao Brewery | NTG Nordic vs. HF SINCLAIR P |
| ANDRADA MINING vs. NIPPON STEEL SPADR | ANDRADA MINING vs. BLUESCOPE STEEL | ANDRADA MINING vs. COSMOSTEEL HLDGS | ANDRADA MINING vs. United States Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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