Correlation Between NTG Nordic and JLT MOBILE
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and JLT MOBILE 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 JLT MOBILE 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 JLT MOBILE PUTER, you can compare the effects of market volatilities on NTG Nordic and JLT MOBILE 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 JLT MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and JLT MOBILE.
Diversification Opportunities for NTG Nordic and JLT MOBILE
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NTG and JLT is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and JLT MOBILE PUTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT MOBILE PUTER 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 JLT MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT MOBILE PUTER has no effect on the direction of NTG Nordic i.e., NTG Nordic and JLT MOBILE go up and down completely randomly.
Pair Corralation between NTG Nordic and JLT MOBILE
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.89 times more return on investment than JLT MOBILE. However, NTG Nordic Transport is 1.12 times less risky than JLT MOBILE. It trades about -0.01 of its potential returns per unit of risk. JLT MOBILE PUTER is currently generating about -0.04 per unit of risk. If you would invest 3,940 in NTG Nordic Transport on October 23, 2024 and sell it today you would lose (840.00) from holding NTG Nordic Transport or give up 21.32% 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. JLT MOBILE PUTER
Performance |
| Timeline |
| NTG Nordic Transport |
| JLT MOBILE PUTER |
NTG Nordic and JLT MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and JLT MOBILE
The main advantage of trading using opposite NTG Nordic and JLT MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, JLT MOBILE 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 JLT MOBILE will offset losses from the drop in JLT MOBILE's long position.| NTG Nordic vs. SALESFORCE INC CDR | NTG Nordic vs. The Trade Desk | NTG Nordic vs. TRADEGATE | NTG Nordic vs. H2O Retailing |
| JLT MOBILE vs. Nomad Foods | JLT MOBILE vs. NTG Nordic Transport | JLT MOBILE vs. EBRO FOODS | JLT MOBILE vs. High Liner Foods |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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