Correlation Between NTG Nordic and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on NTG Nordic and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and GAMESTOP.
Diversification Opportunities for NTG Nordic and GAMESTOP
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NTG and GAMESTOP is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of NTG Nordic i.e., NTG Nordic and GAMESTOP go up and down completely randomly.
Pair Corralation between NTG Nordic and GAMESTOP
Assuming the 90 days trading horizon NTG Nordic is expected to generate 3.64 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, NTG Nordic Transport is 1.72 times less risky than GAMESTOP. It trades about 0.05 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,142 in GAMESTOP on September 2, 2024 and sell it today you would earn a total of 560.00 from holding GAMESTOP or generate 26.14% 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. GAMESTOP
Performance |
| Timeline |
| NTG Nordic Transport |
| GAMESTOP |
NTG Nordic and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and GAMESTOP
The main advantage of trading using opposite NTG Nordic and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP'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 |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |