Correlation Between NTG Nordic and Computer
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Computer 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 Computer 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 Computer And Technologies, you can compare the effects of market volatilities on NTG Nordic and Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Computer.
Diversification Opportunities for NTG Nordic and Computer
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between NTG and Computer is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of NTG Nordic i.e., NTG Nordic and Computer go up and down completely randomly.
Pair Corralation between NTG Nordic and Computer
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.61 times more return on investment than Computer. However, NTG Nordic Transport is 1.63 times less risky than Computer. It trades about 0.11 of its potential returns per unit of risk. Computer And Technologies is currently generating about -0.29 per unit of risk. If you would invest 3,705 in NTG Nordic Transport on September 1, 2024 and sell it today you would earn a total of 125.00 from holding NTG Nordic Transport or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Computer And Technologies
Performance |
| Timeline |
| NTG Nordic Transport |
| Computer And Technologies |
NTG Nordic and Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Computer
The main advantage of trading using opposite NTG Nordic and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer'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 |
| Computer vs. FUJITSU LTD ADR | Computer vs. Superior Plus Corp | Computer vs. NMI Holdings | Computer vs. Origin Agritech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |