Correlation Between NTG Nordic and AMAG AUSTRIA
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and AMAG AUSTRIA 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 AMAG AUSTRIA 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 AMAG AUSTRIA M, you can compare the effects of market volatilities on NTG Nordic and AMAG AUSTRIA 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 AMAG AUSTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and AMAG AUSTRIA.
Diversification Opportunities for NTG Nordic and AMAG AUSTRIA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and AMAG is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and AMAG AUSTRIA M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG AUSTRIA M 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 AMAG AUSTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG AUSTRIA M has no effect on the direction of NTG Nordic i.e., NTG Nordic and AMAG AUSTRIA go up and down completely randomly.
Pair Corralation between NTG Nordic and AMAG AUSTRIA
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the AMAG AUSTRIA. In addition to that, NTG Nordic is 3.01 times more volatile than AMAG AUSTRIA M. It trades about -0.04 of its total potential returns per unit of risk. AMAG AUSTRIA M is currently generating about -0.07 per unit of volatility. If you would invest 3,032 in AMAG AUSTRIA M on September 12, 2024 and sell it today you would lose (602.00) from holding AMAG AUSTRIA M or give up 19.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
NTG Nordic Transport vs. AMAG AUSTRIA M
Performance |
| Timeline |
| NTG Nordic Transport |
| AMAG AUSTRIA M |
NTG Nordic and AMAG AUSTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and AMAG AUSTRIA
The main advantage of trading using opposite NTG Nordic and AMAG AUSTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, AMAG AUSTRIA 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 AMAG AUSTRIA will offset losses from the drop in AMAG AUSTRIA'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 |
| AMAG AUSTRIA vs. SINGAPORE AIRLINES | AMAG AUSTRIA vs. UNIVMUSIC GRPADR050 | AMAG AUSTRIA vs. American Airlines Group | AMAG AUSTRIA vs. ECHO INVESTMENT ZY |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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