Correlation Between NTG Nordic and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on NTG Nordic and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and ANTA SPORTS.
Diversification Opportunities for NTG Nordic and ANTA SPORTS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NTG and ANTA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of NTG Nordic i.e., NTG Nordic and ANTA SPORTS go up and down completely randomly.
Pair Corralation between NTG Nordic and ANTA SPORTS
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.93 times more return on investment than ANTA SPORTS. However, NTG Nordic Transport is 1.08 times less risky than ANTA SPORTS. It trades about -0.05 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.22 per unit of risk. If you would invest 4,005 in NTG Nordic Transport on August 27, 2024 and sell it today you would lose (90.00) from holding NTG Nordic Transport or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| NTG Nordic Transport |
| ANTA SPORTS PRODUCT |
NTG Nordic and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and ANTA SPORTS
The main advantage of trading using opposite NTG Nordic and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS'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 |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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