Correlation Between NTG Nordic and Air Transport
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on NTG Nordic and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Air Transport.
Diversification Opportunities for NTG Nordic and Air Transport
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NTG and Air is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of NTG Nordic i.e., NTG Nordic and Air Transport go up and down completely randomly.
Pair Corralation between NTG Nordic and Air Transport
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Air Transport. In addition to that, NTG Nordic is 4.71 times more volatile than Air Transport Services. It trades about -0.2 of its total potential returns per unit of risk. Air Transport Services is currently generating about -0.07 per unit of volatility. If you would invest 2,040 in Air Transport Services on January 8, 2025 and sell it today you would lose (20.00) from holding Air Transport Services or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Air Transport Services
Performance |
| Timeline |
| NTG Nordic Transport |
| Air Transport Services |
NTG Nordic and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Air Transport
The main advantage of trading using opposite NTG Nordic and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| NTG Nordic vs. UNITED RENTALS | NTG Nordic vs. DAIDO METAL TD | NTG Nordic vs. Aluminum of | NTG Nordic vs. ScanSource |
| Air Transport vs. MHP Hotel AG | Air Transport vs. Emperor Entertainment Hotel | Air Transport vs. COVIVIO HOTELS INH | Air Transport vs. Air New Zealand |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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