Correlation Between NTG Nordic and KUBOTA P
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and KUBOTA P 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 KUBOTA P 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 KUBOTA P ADR20, you can compare the effects of market volatilities on NTG Nordic and KUBOTA P 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 KUBOTA P. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and KUBOTA P.
Diversification Opportunities for NTG Nordic and KUBOTA P
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between NTG and KUBOTA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and KUBOTA P ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KUBOTA P ADR20 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 KUBOTA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KUBOTA P ADR20 has no effect on the direction of NTG Nordic i.e., NTG Nordic and KUBOTA P go up and down completely randomly.
Pair Corralation between NTG Nordic and KUBOTA P
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 1.61 times more return on investment than KUBOTA P. However, NTG Nordic is 1.61 times more volatile than KUBOTA P ADR20. It trades about 0.03 of its potential returns per unit of risk. KUBOTA P ADR20 is currently generating about 0.0 per unit of risk. If you would invest 3,020 in NTG Nordic Transport on September 13, 2024 and sell it today you would earn a total of 695.00 from holding NTG Nordic Transport or generate 23.01% 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. KUBOTA P ADR20
Performance |
| Timeline |
| NTG Nordic Transport |
| KUBOTA P ADR20 |
NTG Nordic and KUBOTA P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and KUBOTA P
The main advantage of trading using opposite NTG Nordic and KUBOTA P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, KUBOTA P 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 KUBOTA P will offset losses from the drop in KUBOTA P's long position.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. SIVERS SEMICONDUCTORS AB | NTG Nordic vs. NorAm Drilling AS | NTG Nordic vs. Norsk Hydro ASA |
| KUBOTA P vs. Gaztransport Technigaz SA | KUBOTA P vs. Ming Le Sports | KUBOTA P vs. AOYAMA TRADING | KUBOTA P vs. NTG Nordic Transport |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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