Correlation Between NTG Nordic and Shyft
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Shyft 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 Shyft 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 The Shyft Group, you can compare the effects of market volatilities on NTG Nordic and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Shyft.
Diversification Opportunities for NTG Nordic and Shyft
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NTG and Shyft is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of NTG Nordic i.e., NTG Nordic and Shyft go up and down completely randomly.
Pair Corralation between NTG Nordic and Shyft
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.74 times more return on investment than Shyft. However, NTG Nordic Transport is 1.34 times less risky than Shyft. It trades about 0.0 of its potential returns per unit of risk. The Shyft Group is currently generating about -0.03 per unit of risk. If you would invest 3,780 in NTG Nordic Transport on October 22, 2024 and sell it today you would lose (680.00) from holding NTG Nordic Transport or give up 17.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NTG Nordic Transport vs. The Shyft Group
Performance |
| Timeline |
| NTG Nordic Transport |
| Shyft Group |
NTG Nordic and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Shyft
The main advantage of trading using opposite NTG Nordic and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| NTG Nordic vs. CARSALESCOM | NTG Nordic vs. Salesforce | NTG Nordic vs. CLOVER HEALTH INV | NTG Nordic vs. Universal Health Realty |
| Shyft vs. BII Railway Transportation | Shyft vs. ON SEMICONDUCTOR | Shyft vs. DICKS Sporting Goods | Shyft vs. ELMOS SEMICONDUCTOR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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