Correlation Between NTG Nordic and Caseys General
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on NTG Nordic and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Caseys General.
Diversification Opportunities for NTG Nordic and Caseys General
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and Caseys is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of NTG Nordic i.e., NTG Nordic and Caseys General go up and down completely randomly.
Pair Corralation between NTG Nordic and Caseys General
Assuming the 90 days trading horizon NTG Nordic is expected to generate 1.72 times less return on investment than Caseys General. In addition to that, NTG Nordic is 1.64 times more volatile than Caseys General Stores. It trades about 0.03 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.08 per unit of volatility. If you would invest 21,711 in Caseys General Stores on September 13, 2024 and sell it today you would earn a total of 17,689 from holding Caseys General Stores or generate 81.47% 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. Caseys General Stores
Performance |
| Timeline |
| NTG Nordic Transport |
| Caseys General Stores |
NTG Nordic and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Caseys General
The main advantage of trading using opposite NTG Nordic and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. SIVERS SEMICONDUCTORS AB | NTG Nordic vs. NorAm Drilling AS | NTG Nordic vs. Norsk Hydro ASA |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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