Correlation Between NTG Nordic and Dow Jones
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on NTG Nordic and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Dow Jones.
Diversification Opportunities for NTG Nordic and Dow Jones
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NTG and Dow is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of NTG Nordic i.e., NTG Nordic and Dow Jones go up and down completely randomly.
Pair Corralation between NTG Nordic and Dow Jones
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 3.78 times more return on investment than Dow Jones. However, NTG Nordic is 3.78 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 3,135 in NTG Nordic Transport on August 28, 2024 and sell it today you would earn a total of 780.00 from holding NTG Nordic Transport or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.55% |
| Values | Daily Returns |
NTG Nordic Transport vs. Dow Jones Industrial
Performance |
| Timeline |
NTG Nordic and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NTG Nordic Transport
Pair trading matchups for NTG Nordic
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NTG Nordic and Dow Jones
The main advantage of trading using opposite NTG Nordic and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| NTG Nordic vs. Lifeway Foods | NTG Nordic vs. PT Indofood Sukses | NTG Nordic vs. TreeHouse Foods | NTG Nordic vs. ADRIATIC METALS LS 013355 |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |