Correlation Between NTG Nordic and DATA MODUL
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and DATA MODUL 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 DATA MODUL 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 DATA MODUL , you can compare the effects of market volatilities on NTG Nordic and DATA MODUL 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 DATA MODUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and DATA MODUL.
Diversification Opportunities for NTG Nordic and DATA MODUL
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NTG and DATA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and DATA MODUL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA MODUL 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 DATA MODUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATA MODUL has no effect on the direction of NTG Nordic i.e., NTG Nordic and DATA MODUL go up and down completely randomly.
Pair Corralation between NTG Nordic and DATA MODUL
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.96 times more return on investment than DATA MODUL. However, NTG Nordic Transport is 1.04 times less risky than DATA MODUL. It trades about -0.2 of its potential returns per unit of risk. DATA MODUL is currently generating about -0.29 per unit of risk. If you would invest 3,450 in NTG Nordic Transport on November 7, 2024 and sell it today you would lose (280.00) from holding NTG Nordic Transport or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. DATA MODUL
Performance |
| Timeline |
| NTG Nordic Transport |
| DATA MODUL |
NTG Nordic and DATA MODUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and DATA MODUL
The main advantage of trading using opposite NTG Nordic and DATA MODUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, DATA MODUL 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 DATA MODUL will offset losses from the drop in DATA MODUL's long position.| NTG Nordic vs. Kuehne Nagel International | NTG Nordic vs. ZTO EXPRESS | NTG Nordic vs. NIKKON HOLDINGS TD | NTG Nordic vs. SENKO GROUP HOLDINGS |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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