Correlation Between NTG Nordic and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on NTG Nordic and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and AM EAGLE.
Diversification Opportunities for NTG Nordic and AM EAGLE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NTG and AFG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of NTG Nordic i.e., NTG Nordic and AM EAGLE go up and down completely randomly.
Pair Corralation between NTG Nordic and AM EAGLE
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.89 times more return on investment than AM EAGLE. However, NTG Nordic Transport is 1.12 times less risky than AM EAGLE. It trades about 0.0 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about -0.02 per unit of risk. If you would invest 3,935 in NTG Nordic Transport on September 1, 2024 and sell it today you would lose (105.00) from holding NTG Nordic Transport or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| NTG Nordic Transport |
| AM EAGLE OUTFITTERS |
NTG Nordic and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and AM EAGLE
The main advantage of trading using opposite NTG Nordic and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech | NTG Nordic vs. SIVERS SEMICONDUCTORS AB |
| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |